Expected market price
You are thinking about buying a share of Kampfert Industries, which has a current market price of $31.60 per share. Kampfert’s expects to pay a dividend of $2.37 per share next year. Your required rate of return on these types of investments is 12%. If dividends are expected to grow at a constant rate for the foreseeable future, and if your required rate of return is expected to remain at 12%, what is the expected market price per share in 5 years?