Problem:
Ewald Company's current stock price is $36, and its last dividend was $2.40. In view of Ewald's strong financial position and its consequent low risk, its required rate of return is only 12%. If dividends are expected to grow at a constant rate g in the future, and if r is expected to remain at 12%, then what is Ewald's expected stock price 5 years from now?
Note: Explain all calculation and formulas.