Assume that Temp Force is constant growth company whose last dividend (D. which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6 percent rate.
(1) What is the firm's expected dividend stream over the next 3 years?
(2) What is the firm's 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 during the first year?