Common stock value Variable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. Durin

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Common Stock Value Variable Growth Newman Manufacturing Is Considering A Cash Purchase Of The Stock Of Grips Tool Durin 1 (17.09 KiB) Viewed 43 times

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 $3.66 per share and paid cash dividends of $1.96 per share (D-$1.96) 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 10% on investments with risk characteristics similar to those of Grips? COTE The maximum price per share that Newman should pay for Grips is $(Round to the nearest cent)