Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $ 3.01per share and paid cash dividends of $ 1.31per share (D0). Grips' earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 5% 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?

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