Considering a cash purchase of stock of siti cake company

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Nurul manufacturing is considering a cash purchase of the stock of siti cake company.during the year just completed, siti earned $4.25 per share. siti earning and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow at 10% per year to infinity. what is the maximumprice per share that nurul should pay for siti cake if it has a requiredreturn of 14% on investments with risk characteristics similar to those of siti's?

Reference no: EM131526941

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