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Common stock value-variable growth: Newman manufacturing is considering a cash purchase of the stock of Grips...

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 $3.03 per share and paid cash dividends of $1.33 per share (D0=$1.33). Grips’ earnings and dividends are expected to grow at 40% per year for the next 3 years, after which they are expected to grow 6% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 13% on investments with risk characteristics similar to those of Grips?
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