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Please show work and answer all parts. Thank you!!!! 2. H&M stock is expected to pay the following dividend stream. Dividends will not be paid

Please show work and answer all parts. Thank you!!!! image text in transcribed
2. H&M stock is expected to pay the following dividend stream. Dividends will not be paid at t-1 and t-2, but H&M will pay $3.00/share at t-3 through t-10, inclusively. The dividend at t-11 will be $3.15 and dividends will thereafter grow at a rate of 2% each year, forever. The appropriate required rate of return for valuing H&M stock is 10%. (a) Draw a timeline, depicting the anticipated dividend cash flows for this stock. Please be sure to show all dividends up through at least Dis (the dividend at year 13). (6 marks) b) What should be H&M's stock price today using dividend discount model? (14 marks)

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