Question: Common stock value-Variable growth Newman Manufacturing is considering a cash purchase of the stock of Gripa Tool. During the year just completed, Grips eamed 54.22

Common stock value-Variable growth Newman Manufacturing is considering a cash purchase of the stock of Gripa Tool. During the year just completed, Grips eamed 54.22 per share and paid cash dividends of $2.52 per share (0.= $2.52) Grips' earnings and dividends are expected to grow at 20% 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 rotum of 11% on investments with risk characteristics similar to those of Gripe? The maximum price per share that Newman should pay for Grips is SL (Round to the nearest cont.)

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