Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $ per share and paid cash dividends of $ per share (D0). Grips' earnings and dividends are expected to grow at % per year for the next 3 years, after which they are expected to grow % per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of % on investments with risk characteristics similar to those of Grips? The maximum price per share that Newman should pay for Grips is $ nothing. (Round to the nearest cent.)

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is

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Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?