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.

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

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