Problem 8-35 P/E Model and Cash Flow Valuation (LG8-5, LG8-7) Suppose that a firm's recent earnings per share and dividend per share are $2.80 and $1.80, respectively. Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 27 seems high for this growth rate. The P/E ratio is expected to fall to 23 within five years Compute the dividends over the next five years. (Do not round intermediate calculations. Round your answers to 3 decimel places.) Dividends Years First year Second year Third year Fourth year Fth year Compute the value of this stock in five years. (Do not round intermediate calculetions, Round your enswer to 2 decimal places.) Stock price Calculate the present value of these cash flows using a 10 percent discount rate (Do not round intermediete calculetions. Round your answer to 2 decimal places.) Present value