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

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Anc Common Stock Value Variable Growth Newman Manufacturing Is Considering A Cash Purchase Of The Stock Of Grips Tool D 1 (21.06 KiB) Viewed 43 times

anc 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 $3.48 per share and paid cash dividends of $1.78 per share (D-$1.78) Grips' earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 7% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 12% on investments with risk characteristics similar to those of Grips? CITES The maximum price per share that Newman should pay for Grips is $ (Round to the nearest cent)