Question
fin 305 chapter 8 question 11 Suppose that a firms recent earnings per share and dividend per share are $2.70 and $1.70, respectively. Both are
fin 305 chapter 8 question 11
| Suppose that a firms recent earnings per share and dividend per share are $2.70 and $1.70, respectively. Both are expected to grow at 7 percent. However, the firms current P/E ratio of 26 seems high for this growth rate. The P/E ratio is expected to fall to 22 within five years. |
| Compute the dividends over the next five years. (Do not round intermediate calculations and round your finalanswers to 3 decimal places.) |
| Dividends | Years |
| First year | $ |
| Second year | $ |
| Third year | $ |
| Fourth year | $ |
| Fifth year | $ |
|
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0132162302
