Homework: Chapter $7-$ Stock Valuation

$($HW$)$

Question $5,$ P$7-13($similar to$)$

HW Score: $50\%,4$ of $8$ points

$)$ Points: $0$ of $1$

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 $$3\mathrm{.}87$ per share and paid cash dividends of $$2\mathrm{.}17$ per share $).$ 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 $15\%$ on investments with risk characteristics similar to those of Grips?

The maximum price per share that Newman should pay for Grips is $$.($Round to the nearest cent.$)$