Assume that Houston Inc. is a constant growth company with a required rate of return of 13 percent whose last dividend (D0, which was paid yesterday) was $2.00, and whose dividend is expected to grow indefinitely at a 5 percent rate.

1. What is the firms expected dividend stream over the next 3 years?
2. What is the firms current stock price?
3. What is the stock's expected value 1 year from now?

4. What are the expected dividend yield, the capital gains yield, and the total return for Houston Inc. during the first year.