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Suppose that a firm's recent earnings per share and dividend per share are $2.30 and $1.30, respectively. Both are expected to grow at 7 percent.

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Suppose that a firm's recent earnings per share and dividend per share are $2.30 and $1.30, respectively. Both are expected to grow at 7 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. The P/E ratio is expected to fall to 18 within five years. Compute the dividends over the next five years. Compute the value of this stock in five years. Calculate the present value of these cash flows using a 9 percent discount rate. Complete this question by entering your answers in the tabs below. Compute the dividends over the next five years. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Suppose that a firm's recent earnings per share and dividend per share are $2.30 and $1.30, respectively. Both are expected to grow at 7 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. The P/E ratio is expected to fall to 18 within five years. Compute the dividends over the next five years. Compute the value of this stock in five years, Calculate the present value of these cash flows using a 9 percent discount rate. Complete this question by entering your answers in the tabs below. Compute the value of this stock in five years. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Suppose that a firm's recent earnings per share and dividend per share are $2.30 and $1.30, respectively. Both are expected to grow at 7 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. The P/E ratio is expected to fall to 18 within five years. Compute the dividends over the next five years. Compute the value of this stock in five years. Calculate the present value of these cash flows using a 9 percent discount rate. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the present value of these cash flows using a 9 percent discount rate. Note: Do not round intermediate calculations. Round your answer to 2 decimal places

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