Common stock value-variable growth newman manufacturing is


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 $3.52 per share and paid cash dividends of $1.82 per share (D0-31.82). Grips, earnings and dividends are expected to grow at 30% per year for the next 3 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 ifit 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 s(Round to the nearest cent.)

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Financial Management: Common stock value-variable growth newman manufacturing is
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