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4 Suppose that a firm's recent earnings per share and dividend per share are $2.50 and $1.s0, respectively, Both are expected to grow at 9

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4 Suppose that a firm's recent earnings per share and dividend per share are $2.50 and $1.s0, respectively, Both are expected to grow at 9 percent. However, the firm's current P/E ratio of 24 seems high for this growth rate. The P/E ratio is expected to fall to 20 within five years. Compute the dividends over the next five years. (Do not round intermedilate calculations Round jour answers to 3 declmal places) points Dividends Years First year Second year Third year Fourth year Fifth year i eBook Compute the value of this stock in five years. (Do not round intermediate calculations. Round your answer to 2 price Calculate the present value of these cash flows using an 11 percent discount rate. your answer to 2 decimal places.) (Do not round intermediate calculations. Round Present value

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