Answer:
$30.35
Step-by-step explanation:
We know,
Stock price,
=

Given,
= $0.8575
Constant Growth Rate, g = 5.50% = 0.055
Required rate of return on the stock = 9% = 0.09
As we do not know the value of
, we have to find it through =
x (1 + g)
Putting the value in the stock price formula for third year
=

=

=

= $30.35