You are analyzing Jillian's Jewelry (J) stock for a possible purchase. J just paid a dividend of $2.25 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. a. What dividends do you expect for J s stock over the next 3 years? In other words, calculate D1,D2 and D3. Note that D0=$2.25. Do not round intermediate calculations. Round your answers to the nearest cent. D1=$D2=$D3=$ b. J stock has a required return of 9%, and so this is the rate you'll 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. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. Jj stock should trade for $94.693 years from now (i.e., you expect P3=$94.69 ). Discounted at a 9% rate, what is the present value of this expected future stock price? In other words, calculate the PV of \$94.69. Do not round intermediate calculations. Round your answer to the nearest cent. $ d. If you plan to buy the stock, hold it for 3 years, and then sell it for $94.69, what is the most you should pay for it? Do not round intermediate calculations. Round your answer to the nearest cent. $ e. Use the constant growth model to calculate the present value of this stock. Assume that gL=6%, and it is constant. Do not round intermediate calculations. Round your answer to the nearest cent. s You are analyzing Jillian's Jewelry (J) stock for a possible purchase. J just paid a dividend of $2.25 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. a. What dividends do you expect for J s stock over the next 3 years? In other words, calculate D1,D2 and D3. Note that D0=$2.25. Do not round intermediate calculations. Round your answers to the nearest cent. D1=$D2=$D3=$ b. J stock has a required return of 9%, and so this is the rate you'll 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. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. Jj stock should trade for $94.693 years from now (i.e., you expect P3=$94.69 ). Discounted at a 9% rate, what is the present value of this expected future stock price? In other words, calculate the PV of \$94.69. Do not round intermediate calculations. Round your answer to the nearest cent. $ d. If you plan to buy the stock, hold it for 3 years, and then sell it for $94.69, what is the most you should pay for it? Do not round intermediate calculations. Round your answer to the nearest cent. $ e. Use the constant growth model to calculate the present value of this stock. Assume that gL=6%, and it is constant. Do not round intermediate calculations. Round your answer to the nearest cent. s