Animal Quest company is attempting to determine the value of Wild and Free, a business that nurtures infant animals in preparation for their appearance in zoos. Animal Quest plans to pay in cash. AQ wishes to determine the applicable discount rate to use in the constant growth stock valuation model. Wild and free is not publicly traded. After studying the required rates of return for companies similar to wild and free that are publicly traded AQ believes that an appropriate risk premium on Wild and free's stock is about 5%. The risk free rate is currently 9%. Wild and frees dividend per share for each of the past 6 years is shown in the table below.

YEAR	DIVIDEND
2012	$6.88
2011	$6.56
2010	$6.30
2009	$5.80
2008	$5.50
2007	$4.90

a. Calculate the stock price of W&F resulting from a 2% decrease in it's dividend growth rate from that shown in 2007-2012. Provide one possible cause for this change.

b.Calculate the stock price of W&F resulting from a 4% decrease in it's RISK PREMIUM. Provide one possible cause for this change.