Cemmon stock value - Variable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips eamed \$3 36 per stare and paid cash dividends of $1.66 per share (D0=$1.66). Grips' oarnings and dividends are expocled to grow at 35% per year for the noxt 3 yoars, attor which they are axpectod to grow T\% per yeae to infinity. What is the maximum price per share that Nawman should poy for Grips if it has a required retian of 16% on invostments with risk daracteritics simiar to thoae of Grpes? The maximum price per share that Newman should pay lor Grips is : (Round to the neareet cert.)