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Northern Co. expects to pay a dividend of $1 per share next year, which will grow at 10% for the following 3 years, i.e. the
Northern Co. expects to pay a dividend of $1 per share next year, which will grow at 10% for the following 3 years, i.e. the growth rate is sustained from year 1 to year 4. Afterwards, the growth becomes 2%. The cost of capital for Northern Co. is 5%. What is today's share price of Northern Co.?
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