FINC 3400 -Fall 2020 jonathan ross & I 10/23/20 3:43 AM Homework: HW #11 - Chapter 7B Save Score: 0 of 4 pts 6 of 7 (0 complete) HW Score: 0%, 0 of 31 pts P7-23 (similar to) Question Help Integrative Risk and valuation Giant Enterprises stock has a required return of 13 2% The company, which plans to pay a dividend of $2 24 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2013 2019 period, when the following dividends were paid a. If the risk-free rate is 3%, 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 growth rato to the nearest whole percent) c. Explain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock a. If the risk-free rate is 3%, the risk premium on Giant's stock is (Round to one decimal place ) Data Table - X (Click on the icon here in order to copy the contents of the data table below into a spreadsheet Year Dividend per Share 2019 $209 2018 $196 2017 $183 2016 $171 2015 $1 60 2014 $1.49 2013 $139 Print Done Clonal 2 parts remaining