Question: Edit View Faventes Toolk Help ) Scan Profile a DCA-XROme (2) DCA-KROrne value 10.00 points Suppose that a firm's recent earnings per share and dividend

 Edit View Faventes Toolk Help ) Scan Profile a DCA-XROme (2)

Edit View Faventes Toolk Help ) Scan Profile a DCA-XROme (2) DCA-KROrne value 10.00 points Suppose that a firm's recent earnings per share and dividend per share are $3.25 and $2.80, respect this Both growth rate. The P/E rato is expected to fall to 25 within five years Compute the dividends over the next five years. (Do not round intermediate calculations. Round your are expected to grow at 8 percent. However, the firm's current P/E ratio of 29 seems high for final answer to 3 decimal places.) Years Dividends First year Second year Third year Fourth year Fifth year Compute the value of this stock price 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 Rafarancas

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