11.

Integrative-Risk and valuation Giant Enterprises' stock has a required return of 16.5%. The company, which plans to pay a dividend of \$1.85 per share in hhe coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2016-2022 period, when the following dividends were paid: a. If the risk-tree rate is 6%, what is the risk premium on Giant's stock? b. Using the constant-growth model, estimate the value of Giant's stock. (Hint. Round the computed dividend growh rate to the nearest whole percent.) c. Explain what effect, if any, a deorease in the risk premium would have on the value of Giant's stock. a. If the riskofree rate is 6%, the risk premium on Giant's stook is 96. (Round to one decimai piace.) Data table (Click on the icon here in order to copy the contents ff the data table below into a spreadsheet.)