Compute the dividends over the next five years

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Reference no: EM131516943

Suppose that a firm’s recent earnings per share and dividend per share are $3.60 and $2.60, respectively. Both are expected to grow at 8 percent. However, the firm’s current P/E ratio of 17 seems high for this growth rate. The P/E ratio is expected to fall to 13 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 Years First year $ Second year $ Third year $ Fourth year $ Fifth year $

Reference no: EM131516943

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