Suppose that a firm's recent earnings per share and dividend per share are $$3\mathrm{.}70$ and $$2\mathrm{.}70,$ respectively. Both are expected to grow at $9$ percent. However, the firm's current P$/$E ratio of $18$ seems high for this growth rate. The P$/$E ratio is expected to fall to $14$ 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 an $11$ percent discount rate.

Complete this question by entering your answers in the tabs below.

Present value

Compute the dividends over the next five years.

Note: Do not round intermediate calculations. Round your answers to $3$ decimal places.

$\backslash$table$[[$Years$,$Dividends$],[$First year,$$,3\mathrm{.}320],[$Second year,$$,3\mathrm{.}550],[$Third year,$$,3\mathrm{.}800],[$Fourth year,$$,4\mathrm{.}060],[$Fifth year,$$,4\mathrm{.}350]]$