Considering cash purchase of the stock of grips tool

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Reference no: EM131522587

Newman manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just? completed, Grips earned ?$3.24 per share and paid cash dividends of ?$1.54 per share ?(D0equals=$1.54?). ? Grips' earnings and dividends are expected to grow at 35?% 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 11?% on investments with risk characteristics similar to those of? Grips?

The maximum price per share that Newman should pay for Grips is___?

Reference no: EM131522587

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