Common stock valuelong dashvariable growth newman manufacturing is considering a cash purchase of the stock of grips tool. during the year just completed, grips earned $2.78 per share and paid cash dividends of $1.08 per share (d0equals$ 1.08). 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 13% on investments with risk characteristics similar to those of grips?

answer: 204

step-by-step explanation:

we are told that the revenue is

x⋅(4080−10x)=−10x^2+4080x

this is a quadratic function, so to maximize it we should find the x-value of its vertex. recall that the x-value of the vertex of the parabola ax^2+bx+c is given by the formula −b/2a.

so in this case, we have a=−10 and b=4080, so the x-value of the vertex is

−b/2a= −(4080)/2(−10)=204

this may not be at all, but i use the same website you're using for school, and if i'm stuck doing one of these i try to look for it on the section.

no

explanation:

you can be freinds, and people but not follow people.