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Suppose that a firm's recent earnings per share and dividend per share are $2.10 and...

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Accounting

Suppose that a firm's recent earnings per share and dividend per share are $2.10 and $1.10, respectively. Both are expected to grow at 9 percent. However, the firm's current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years. Compute the dividends over the next five years. Compute the value of this stock in five years. Calculate the present value of these cash flows using an 11 percent discount rate.

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Compute the dividindh over the frod not cound Intermediate calculations. Round your final answer to 3decimal plates. Compuna of stocknrve Mars Da not round intermediate calculations. Round decimal places) Sock the present value of thosa cash saws an 11 dscourt (Do not round intermediate your final answer to 2 place

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\table[[Month,Un Produced,Total Cost],[January,27,500,$21,500 \table[[Month,Un Produced,Total Cost],[January,27,500,21,500],[February,22,500,20,500],[March,25,000,25,000],[April,35,000,21,500],[May,47,500,25,500],[June,17,500,18,500],[July,30,000,23,500],[August,52,500,28,500],[September,37,500,26,000],[October,62,500,29,000],[November,67,500,31,000],[December,57,500,26,000]] Colculate: MIN units...

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