FINANCE- Suppose that a firmâs recent earnings per share and dividend per share
fin 305 chapter 8 question 12Suppose that a firmâs recent earnings per share and dividend per share are $3.40 and $3.10, respectively. Both are expected to grow at 8 percent. However, the firmâs current P/E ratio of 32 seems high for this growth rate. The P/E ratio is expected to fall to 28 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places.) DividendsYears First year$ Second year$ Third year$ Fourth year$ Fifth year$
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