Newman manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just? completed, Grips earned ?$3.13 per share and paid cash dividends of ?$1.43 per share ?(D0equals$ 1.43?). ? Grips' earnings and dividends are expected to grow at 30?% 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 14?% on investments with risk characteristics similar to those of? Grips??

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The maximum price per share that Newman should pay for Grips is ?$____ ?(Round to the nearest? cent.)

Kelsey? Drums, Inc., is a? well-established supplier of fine percussion instruments to orchestras all over the United States. The? company's class A common stock has paid a dividend of ?$9 per share per year for the last 19 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 300 shares of Kelsey class A common 9 years ago at a time when the required rate of return for the stock was 12?%. She wants to sell her shares today. The current required rate of return for the stock is 7?%. How much total capital gain or loss will Sally have on her? shares?

The value of the stock when Sally purchased it was ?$______ per share.