Calculate the present value of growth opportunities

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UPS's expected dividend is $2.00 and expected earnings per share is $3.50 for the next year. The required rate of return for HP is 8% and dividend growth rate is 4%. Using the constant-growth dividend discount method, calculate the present value of growth opportunities for HP. Give your answer to the nearest cent (i.e. two decimal places).

Reference no: EM133067759

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