3 P7-12 (similar to) Question Help Common stock value-Variable growth Newman manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.27 per share and paid cash dividends of $1.57 per share (D $1.57) Grips, earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 9% per year to infinity What is the maximum price per share that Newman should pay for Grips if has a required return of 13% 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)