Suppose that a firm's recent earnings per share and dividend per share are $3.20 and $2.20, respectively. Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 31 seems high for this growth rate. The P/E ratio is expected to fall to 27 within five years.

Compute the dividends over the next five years.(Do not round intermediate calculations. Round your final answer to 3 decimal places.)

DividendsYearsFirst year$Second year$Third year$Fourth year$Fifth year$

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

Stock price$

Calculate the present value of these cash flows using a 10 percent discount rate.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value$