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

$4.14

per share and paid cash dividends of

$2.44

per share

(D0=$2.44).

Grips' earnings and dividends are expected to grow at

25%

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

10%

on investments with risk characteristics similar to those of Grips?