A) If the risk-free rate is 9%, what is the risk premium on Giant's stock?

B) Using the constant-growth model, estimate the value of Giant's stock.

Integrative Risk and valuation Giant Enterprises stock has a required return of 14.6%. The company, which plans to pay a dividend of 1.64 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2009-2015 period, when the following dividends were paid: | Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2015 2014 2013 2012 2011 2010 2009 Dividend per Share S1.55 $1.46 $1.38 S1.30 $1.23 $1.16 $1.09