Question: please help with following problem thank you Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During

please help with following problem thank you Common stock valueVariable growth

please help with following problem thank you

Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.17 per share and paid cash dividends of $1.47 per share (D0 = $1.47). Grips' earnings and dividends are expected to grow at 30% per year for the next 3 years, after which they are expected to grow 9% per year to innity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 14% on investments with risk characteristics similar to those of Grips? The maximum price per share that Newman should pay for Grips is $D. (Round to the nearest cent.)

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