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Suppose that a firm’s recent earnings per share and dividend pershare are $2.50 and $1.30, respectively. Both are expected to growat 8 percent. However, the firm’s current P/E ratio of 22 seemshigh for this growth rate. The P/E ratio is expected to fall to 18within five years.Compute the dividends over the next five years. (Do notround intermediate calculations. Round your answers to 3 decimalplaces.)First year $Second year $Third year $Fourth year $Fifth year $Compute the value of this stock in five years. (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)Find Stock price:Calculate the present value of these cash flows using a 10percent discount rate. (Do not round intermediatecalculations. Round your answer to 2 decimal places.)Find Present value:Please answer all the parts correctly. Thanks in advance!