Medical Corporation of America (MCA) has a current stock price of $36, and its last dividend (D0) was $2.40. In view of MCA's strong financial position, its required rate of return is 12 percent. If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in one year.

Given the current stock price, find the stock's constant growth rate:

E(g) = [(P0 * R(Rs)] - D0 / D0 + P0