Suppose that a firm's recent earnings per share and dividend per share are $3.10 and $2.50, respectively. Both are expected to grow at 7 percent.

Suppose that a firm's recent earnings per share and dividend per share are $3.10 and $2.50, 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 stock price over the next five years, and

Compute the present value using 9% discount rate.. Round your final answer to 3 decimal places