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Business, 27.11.2019 23:31 owenr4758

Common stock value long dash variable growth newman manufacturing is considering a cash purchase of the stock of grips tool. during the year just completed, grips earned $4.13 per share and paid cash dividends of $2.43 per share (d0 equals$ 2.43). 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 $.

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