What would a share in natural company be expected

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It is July 2020 and Bundle Box Company has just paid an annual dividend of $1.20 a share. The dividend is expected to increase by 20% in July 2021, 15% in July 2022, 10% in July 2023 and thereafter by 5% a year forever from July 2024 onwards. Investors require a 12% per annum return on Company shares.

Question a. What would a share in Natural Company be expected to sell for today (July 2020)?

Question b. Draw a timeline showing all the expected cash flows.

Reference no: EM132626203

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