Integrative Risk and valuation: 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, anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2013-2019 period, when the following dividends were paid.

a) If the risk-free rate is 4%, what is the risk premium on Giants stock?

b) Using the constant growth dividend model, estimate the value of Giants stock.

c) Explain what effect, if any, a decrease in the risk premium would have on the value of Giants stock.

*Please show formulas/steps so I may learn to complete on my own.