Q. Discman Manufacturing is considering a cash purchase of the stock of Netco. During the year just completed, Netco earned $4.00 per share and paid cash dividends of $2.50 per share (D0 $2.50). Netcos earnings and dividends are expected to grow at 15% per year for the next 3 years, after which they are expected to grow at 8% per year to infinity. What is the maximum price per share that Discman should pay for Netco if it has an opportunity cost of 12%.