Answer is $29.55
Expected Semiannual Dividend for 3 years = $1.20
Current Price = $23.00
Annual Cost of Capital = 18%
Semiannual Cost of Capital = 9%
Let stock price at the end of 3 years be $x
$23.00 = $1.20/1.09 + $1.20/1.09^2 + $1.20/1.09^3 + $1.20/1.09^4
+ $1.20/1.09^5 + $1.20/1.09^6 + $x/1.09^6
$23.00 = $1.20 * (1 - (1/1.09)^6) / 0.09 + $x * (1/1.09)^6
$23.00 = $1.20 * 4.485919 + $x * 0.596267
$23.00 = $5.3831028 + $x * 0.596267
$17.6168972 = $x * 0.596267
$x = $29.55
So, stock price at the end of 3 years is $29.55
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