Suppose that a firms recent earnings per share and dividend per share are $3.10 and $2.50, respectively. Both are expected to grow at 7 percent. However, the firms current P/E ratio of 26 seems high for this growth rate. The P/E ratio is expected to fall to 22 within five years.

Compute the dividends over the next five years.

Dividends	Years
First year	$
Second year	$
Third year	$
Fourth year	$
Fifth year	$

Compute the value of this stock price in five years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock price

$ ??????

Calculate the present value of these cash flows using a 9 percent discount rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.

Present value

$ ??????