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Calculate northern star motor company share price

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Problem 1: Northern Star Motor Company's lastP = $ dividend payment was $1.16. The company's cost of equity funds is 18.7% pa and its expected future dividend growth rate is 2.9% pa. Using the constant dividend growth model, calculate Northern Star Motor Company's share price (P). Give your answer in dollars and cents to the nearest cent.

Reference no: EM132964147

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