Integrative - Risk and Valuation. Hamlin Steel Company wishes to determine the value of Craft Foundry a firm that it is considering acquiring for cash. Hamilin wishos to determine the applicable discount rate to use as an input to the constant-growth valuation model. Cratt's stock is not publicly traded. After studying the tequired rotums of firms similar to Crat that are publicly traded, Hamlin believes that an appropriate risk, promium on Craft stock is about 85. The risk-free rate is currently 3% Craft's dividend per share for each of the past 6 years is shown in the following table: a. Given that Craft is expected to pay a dividend of $2.76 next year, determine the maximum cash price that Hamlin should pay for each share of Craft. (Fint: Round the growth rate to the nearest whole percent.) b. Describe the effect on the resulting value of Craft from: (1) A decrease in its dividend growth rate of 2% from that exhibited over.the 2017-2022 period. (2) A decrease in its risk promium to 7%. a. The required return on Craft's stock is 6. (Round to the nearest whole percentage.) Data table (Click on the icon here into a spreadsheet.)