A fairly valued share's current price is $**4** and it has a total required return of **30**%. Dividends are paid annually and next year's dividend is expected to be $**1**. After that, dividends are expected to grow by **5**% pa in perpetuity. All rates are effective annual returns.

What is the expected dividend income paid at the end of the second year (t=**2**) and what is the expected capital gain from just after the first dividend (t=**1**) to just after the second dividend (t=**2**)? The answers are given in the same order, the dividend and then the capital gain.