Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $4.27 per share and paid cash dividends of $2.57 per share (D₀ = $ 2.57). Grips' earnings and dividends are expected to grow at 20% per year for the next 3 years, after which they are expected to grow 7% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 12% on investments with risk characteristics similar to those of Grips? so The maximum price per share that Newman should pay for Grips is $?
The maximum price per share that Newman should pay for Grips in $ ___________.