Total Return $=$ ke $=$ Dividend Yield $($DY$)+$ Capital Gains Yield $($CGY$)$

$=$ D$1/$P$0+($P$1$ P$0)/$P$0=$ D$1/$P$0+$ g

$($expression above is $$g$$ or capital gains yield$)$

Estimation of the Growth Rate $($g$)$: g $=$ Retention Ratio $*$ ROE

Question: Karp Company's current stock price and its intrinsic value as seen by the average investor is $$24.$ Karp's last dividend was $$1\mathrm{.}60.$ In view, of Karp's low risk, its required rate or return is only $12\%.$ If dividends are expected to grow at a constant rate, g$,$ in the future, and if the cost of equity capital is expected to remain constant at $12\%,$ what is Karp Company's expected stock price $5$ years from now?