Two investors are considering purchasing Home Depot (HD) common stock. The investors agree on the expected values of Div1 ($6.36) and the expected future dividend growth rate (2%). They also agree on the riskiness of the stock and, thus, on the discount rate (required rate of return) of 5%. Assume that the first investor would plan to sell the stock after 2 years and the second investor would plan on selling the stock after 6 years. 

(a) Given the forecasted future dividend stream, calculate what the selling price would be at t=2.

(b) Calculate what the selling price will be at t=6.

(c) Draw a timeline for each investor, depicting the future cash flows that the investor expects to receive across his/her respective holding period

(d) Using the finitehorizon valuation approach and cash flows on your timelines from part c (i.e., the dividends and selling prices), calculate a fair current price for each investor. Briefly explain why the prices are the same.

How do I calculate this on excel and verify the formulas