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 ration of 26 seems high for this growth rate. The P/E ratio is expected to fall to 22 within fyve years. Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places)

Dividends Years

1 yr $1.82

2nd yr 1.946

3rd yr 2.083

4th $2.228

5th year $2.384

Compute the value of the stock in five years. Stock price $83.31

Calculate the price of this stock today, including all six cash flows at discount rate of 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.

What is the present value $___________