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P7-13 (similar to) Question Help Common stock value Variable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the
P7-13 (similar to) Question Help Common stock value Variable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed. Grips earned $4.09 per share and paid cash dividends of $2.39 per share (D, $2,39). Grips' earnings and dividends are expected to grow at 40% per year for the next 3 years after which they are expected to grow 7% per year to infinity What is the maximum pelice per share that Newman should pay for Gripe fit has a required totum of 14% on investments with risk characteristics similar to those of Grips? The maximum price per share that Newman should pay for Grips is $(Round to the nearest cent.)
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