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Suppose that a firm's recent earnings per share and dividend per share are $3.40 and $2.40, respectively. Both are expected to grow at 10 percent. However, the firm's current P/E ratio of 15 seems high for this growth rate. The P/E ratio is expected to fall to 11 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete and correct. Years 2.640 $ Dividends First year Second year Third year S 2.904 $ $ Fourth year Fifth year 3.194 3.514 3.865 $ Compute the value of this stock in five years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Stock price 60.23 IS Return to question UVITUD Tea First year $ 2.640 > Second year $ 2.904 $ 3.194 Third year Fourth year Fifth year $ 3.514 3.865 $ Compute the value of this stock in five years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Stock price 60.23 Calculate the present value of these cash flows using a 12 percent discount rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Present value S 11.37