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

[answerhappygod]

Common Stock Value Variable Growth Newman Manufacturing Is Considering A Cash Purchase Of The Stock Of Grips Tool Durin 1 (14.27 KiB) Viewed 11 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 $2.71 per share and paid cash dividends of $1.01 per share (Do-$1.01). Grips' earnings and dividends are expected to grow at 30% per year for the next years, after which they are expected to grow 6% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 16% on investments with risk characteristics similar to those of Grips? 3 The maximum price per share that Newman should pay for Grips is $ CITT (Round to the nearest cent).