subject: financial management

You are analysing Jilani's Jewellery (JJ) stock for a possible purchase. JJ just paid a dividend of Rs.8.25 yesterday. You expect the dividend to grow at the rate of 6% per year for the next 3 years; if you buy the stock, you plan to hold it for 3 years and then sell it.

i.What dividends do you expect for JJ stock over the next 3 years? In other words, calculate D₁, D₂, and D₃. Note that D₀ Rs.8.25.

ii.JJ stock has a required return of 13%, the rate you will use to discount dividends. Find the present value of the dividend stream; that is, calculate the PV of D₁, D₂, and D₃, and then sum these PVs.

iii.JJ stock should trade for Rs.148.78 3 years from now (i.e., you expect

Discounted at a 13% rate, what is the present value of this expected future stock price? In other words, calculate the PV of Rs.148.78.

iv.If you plan to buy the stock, hold it for 3 years, and then sell it for Rs.148.78, what is the most you should pay for it?

v.Use the constant growth model to calculate the present value of this stock. Assume that g_L 6% and is constant.

vi.Is the value of this stock dependent on how long you plan to hold it? In other words, if your planned holding period were 2 years or 5 years rather than 3 years, would this affect the value of the stock today, ?₀? Explain your answer.

Please donot copy from chegg or any other website I needed unique work and please could you explain in detail (ASAP)

Please show all the calculations, and formula used.