Suppose that a firms recent earnings per share and dividend per share are $2.90 and $2.10, respectively. Both are expected to grow at 8 percent. However, the firms current P/E ratio of 22 seems high for this growth rate. The P/E ratio is expected to fall to 18 within five years.

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

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.)