Common stock valueVariable growthNewman manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned

$4.07 per share and paid cash dividends of $2.37 per share (D0=$2.37). Grips' earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 9% 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?

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Part 1

The maximum price per share that Newman should pay for Grips is

$enter your response here.

(Round to the nearest cent.)