Question: Common steck value-Variable growth Newenan Manufacturing is considering a cash purchase of the sack of Grips Tool. During the year just compleled, Grips earned $2.74

Common steck value-Variable growth Newenan Manufacturing is considering a cash purchase of the sack of Grips Tool. During the year just compleled, Grips earned \$2.74 per shise and paid cash dividends of 51.04 per share (0e =$1. 04) Gros' earnings and dividends are expected to grow at 40% per year for the next 3 years, afler which they are expected to grow 7% per year to intrity. What is the maximum peice per thare that Newman shoild pay for Grips ir it has a fequired refuan of 10% on imwestments with risk characteristics similar to those of Grips? The maximum price per chere that Newman should pay for Grips is (Round to the nevest cent)

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