Giant enterprises stock has a required return of 12.9%. The company which plans to pay a dividend of $1.89 per share in the coming year, anticipate that its future dividends will increase at an annual rate consistent with that experienced over the 2016-2022 period, when the following dividends were paid.

2022 = 1.80

2021= 1.71

2020= 1.63

2019= 1.55

2018= 1.48

2017= 1.41

2016= 1.34

A) If the risk-free rate is 4%, what is the risk premium on Giant's stock?

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

C) Expain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock.