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The Anderson Pipe Co. just paid an annual dividend of $3.75 and is expected to grow at 8% for the forseeable future. Harley Bevins generally

The Anderson Pipe Co. just paid an annual dividend of $3.75 and is expected to grow at 8% for the forseeable future. Harley Bevins generally demands a return of 9% when he invests in companies similar to Anderson. a. What is the most Harley should be willing to pay for a share of Anderson? b. Is your answer reasonable? What's going on here? What should Harley do with this result?

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