Suppose that a firm's recent earnings per share and dividend per share are $2.40 and $1.40, respectively Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 23 seems high for this growth rate. The P/E ratio is expected to fall to 19 within five years Compute the dividends over the next five years. (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Dividends First year Second year Third year Fourth year Fifth year Years 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 67 intermediate calculations. Round your final answer to 2 decimal places.) resent value Hints References eBook & Resources Hint#1