You are analyzing Jillian's Jewlery (JJ) stock for a possible purchase. JJ just paid a dividend of $2.25 yesterday. You expect the dividend to grow at the rate of 5% per year for the next 3 years; if you buy the stock, you plan to hold it for 3 years and then sell it.

If you plan to buy the stock, hold it for 3 years, and then sell it for $25.00, what is the most you should pay for it?Assume a cost of capital of 10%.