Suppose that a firms recent earnings per share

QUESTION

Suppose that a firms recent earnings per share and dividend per share are $3.40 and $3.10, respectively. Both are expected to grow at 8 percent. However, the firms current P/E ratio of 32 seems high for this growth rate. The P/E ratio is expected to fall to 28 within five years.Compute the dividends over the next five years.(Do not round intermediate calculations and round your final answers to 3 decimal places.)DividendsYearsFirst year$Second year$Third year$Fourth year$Fifth year$

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