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you are analyzing Jillian's jewelry (JJ) stock for a possible purchase. JJ just paid a dividend of $1.50 yesterday. You expect the dividend to grow
you are analyzing Jillian's jewelry (JJ) stock for a possible purchase. JJ just paid a dividend of $1.50 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 jj stock over the next 3 years? B. Calculate the PV of D1, D2, D3, and then sum these PVs. C. Calculate the PV of $27.05. D. What is the most you should pay for the stock, if sold for $27.05, after 3 years?
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