Giant enterprises stock has a required return of 14.8%. The company which plans to pay a dividend of $2.60 per share in the coming year, anticipate that its future dividends will increase at an annual rate consistent with that experienced over the 2009-2015 period, when the following dividends were paid.

Year	Dividend per share
2015	$2.45
2014	2.28
2013	2.10
2012	1.95
2011	1.82
2010	1.80
2009	1.73

A) If the risk-free rate is 10%, 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.