Suppose that a firm's recent earnings per share and dividend per share are $2.70 and $1.70, respectively. Both are expected to grow at 7 percent. However, the firm's 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.(Do not round intermediate calculations. Round your answers to 3 decimal places.)

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

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