Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned$4.25 per share and paid cash dividends of$2.55 per share (D0=$2.55). Grips' earnings and dividends are expected to grow at 25%per year for the next 3 years, after which they are expected to grow 10% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 15% 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 $_____(Round to the nearest cent.)