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 $3.32 per share and paid cash

dividends of $1.62 per share (Do = $1.62). Grips' earnings and dividends are expected to grow at 20% 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 12% 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.)