XOX Ltd anticipates that it will pay a dividend of $0.40 in six months time. XOX pays a dividend every six months. The directors of XOX expect that the dividends will then grow at 6% p.a. compounded semi-annually forever. If the shareholders of XOX require a return on equity of 10% p.a. compounded semi-annually, what will be XOXs current share price?

a) Insufficient information to determine the current share price

b) $10.00

c) $20.00

d) $20.60

e) $10.60