Compute the dividends over the next five years

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Suppose that a firm's recent earnings per share and dividend per share are $3.20 and $2.70, respectively. Both are expected to grow at 7 percent. However, the firm's current P/E ratio of 28 seems high for this growth rate. The P/E ratio is expected to fall to 24 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 $

 

Reference no: EM13289646

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