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 $2.10 and $110, respectively. Both are expected to grow at 9 percent. However, the firm's current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five Compute the dividends over the next five years. (Do not round intermediate calculations. Round your answers to 3 decimal places.) First year Third year Fourth year Compute the value of this stock in five years. (Do not round intermediate calcula tions. Round your answer to 2 decimal places.) Stock price