What should you be willing to pay for share of ups today

Assignment Help Financial Management

Reference no: EM132058840

UPS currently pays an annual dividend of $3.00 per share (and you just missed the annual dividend). Analysts are projecting earnings growth of 10% per year over the next 5 years, and you decide that you expect UPS dividends will also grow at 10% per year over the next 5 years. In addition, you expect dividend growth to slow down to 3% per year after the fifth year. Your required return on UPS stock is 8%. What should you be willing to pay for a share of UPS today?

Reference no: EM132058840

Questions Cloud

Explain the rights and duties of landlords : Explain the rights and duties of landlords.

Learn about smartart graphics : Take a look at some of the different options for SmartArt graphics found in Microsoft Word, and indicate which one you feel you are most likely to use.

Discuss the talent management planning process : Describe opportunities for improvement in the talent management planning process. Create at least two (2) more effective approaches to meet the talent.

Calculate the total avoidable costs in keeping old machine : The current market value of the old machine is $40,000. Calculate the total avoidable costs in keeping the old machine and buy a new machine

What should you be willing to pay for share of ups today : Your required return on UPS stock is 8%. What should you be willing to pay for a share of UPS today?

Discuss goals and objectives of conceptual framework project : Case - The Theoretical Foundation of Accounting Principles. Discuss goals and objectives of Conceptual Framework Project

Why has fosmay limited signed this agreement : What is forward rate agreement and why has Fosmay Limited signed this agreement

What role it plays in modern world : It is on Brominated Flame retardants what role it plays in modern world? possible detrimental heaalth effects associated with the chemical Position

Specification of what should be implemented : We can define a requirement as "a specification of what should be implemented". What are the two types of requirements?

User Account

All Pages