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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 $3.62 per share and paid cash dividends of?$1.92 per share ?(D0=$1.92?). Grips' earnings and dividends are expected to grow at 30?% 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 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 ?$

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