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Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of...

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Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.34 per share and paid cash dividends of $1.64 per share (D = $1.64). Grips' earnings and dividends are expected to grow at 30% per year for the next 3 years, after which they are expected to grow 8% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 12% on investments with risk characteristics similar to those of Grips? The maximum price per share that Newman should pay for Grips is $ (Round to the nearest cent.)

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