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Score: 0 of 2 pts 23 of 25 22 complete) 90%, 42 pis P7-13 (similar to) Question Help Common stock value Variable growth Newman Manufacturing

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Score: 0 of 2 pts 23 of 25 22 complete) 90%, 42 pis 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 $3.07 per share and paid cash dividends of $1.37 per share (D =$1.37). Grips earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 8% 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? The maximum price per share that Newman should pay for Grips is s (Round to the nearest cent) Enter your answer in the answer box and then click Check

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