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Common stock value Variable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. Durin
Posted: Sun Jul 03, 2022 1:16 pm
by 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 12 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).