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

$$3\mathrm{.}94$ per share and paid cash dividends of $$2\mathrm{.}24$ per share $(D_0=$$$2\mathrm{.}24).$ Grips' earnings and dividends are expected to grow at $20\%$ 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 it has a required return of $12\%$ on investments with

risk characteristics similar to those of Grips?