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 $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

$

Reference no: EM13869753

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