Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned

$3.68

per share and paid cash dividends of

$1.98

per share

(D0=$1.98).

Grips' earnings and dividends are expected to grow at

20%

per year for the next three years, after which they are expected to grow at

6%

per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of

13%

on investments with risk characteristics similar to those of Grips?

Question content area bottom

Part 1

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

$enter your response here.

(Round to the nearest cent.)