$12\mathrm{.}3$ A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $$2$ per share. The dividend is expected to grow at a constant rate of $5$ percent per year. The stock's required rate of return is $12$ percent.

a$.$ What is the expected dollar dividend over the next three years?

b$.$ What is the current value of the stock and the expected stock

$$ price at the end of each of the next three years?

c$.$ What is the expected dividend yield and capital gains yield for each of the next three years?

d$.$ What is the expected total return for each of the next three years?

e$.$ How does the expected total return compare with the required rate of return on the stock? Does this make sense? Explain your answer.