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 ratio of 26 seems high for this growth rate. The P/E ratio is expected to fall to 22 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.)
|
Dividends
|
Years
|
|
First year
|
$
|
|
Second year
|
$
|
|
Third year
|
$
|
|
Fourth year
|
$
|
|
Fifth year
|
$
|