Suppose that a firms recent earnings per share and dividend per share are $2.10 and $1.10, respectively. Both are expected to grow at 9 percent. However, the firms current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years.

First year	?$
Second year	?$
Third year	?$
Fourth year	?$
Fifth year?

Compute the dividends over the next five years. (Do not round intermediate calculations. Round your final answer to 3 decimal places.) 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 an 11 percent discount rate. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present Value=?