Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.07 per share and paid cash dividends of $1.37 per share (D 0 equals $ 1.37).

Grips' earnings and dividends are expected to grow at 35% per year for the next 3 years, after which they are expected to grow 7% 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?