VariablegrowthNewman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned

$2.71 per share and paid cash dividends of $1.01 per share (D0 equals=$ 1.01). Grips' earnings and dividends are expected to grow at

30% per year for the next 3 years, after which they are expected to grow 88% 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?