Common stock valueVariable growth Newman manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.62 per share and paid cash dividends of$1.92 per share (D0=$1.92). Grips' earnings and dividends are expected to grow at 30% per year for the next 3years, after which they are expected to grow 8% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it 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 $