Integrative Risk and Valuation Hamlin Steel Company wishes to determine the value of Craft Foundry, a firm that is considering sering for cash. Han wishes to determine the applicable discount rate to use as an input to the constant growth valuation model Craf's shock is not publicly traded Aner nudying the required returns of firms similar to Craft that are publicly traded, Hamlin believes that an appropriate tak premium on Craftstock is about the likes vales currently 5% 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 $3.03 next year, determine the maximum cash price that Hamlin should pay for a shame of Cat Het Hound 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 2014-2019 period (2) A decrease in its risk premium to 7% a. The required return on Craf's stock is % (Round to the nearest whole porcentago) The maximum cash price that Hamlin should pay for each share of Craft is $(Round to the nearest cent) b. (1) If the dividend growth rate decreases by 2%, the maximum cash price that Hamn should pay for each share of Crafts Rund to head to (2) If the risk premium decreases to 7%, the required return on Craft's stock is % (Round to the nearest whole percentage) With a 12% required return the maximum cash price that Hamlin should pay for each share of Cratis SC Round is the newest cert) Focat el and the risk-free rate and the company specific Price is a function of the current dividend, w in share price The decrease in the risk pulled future cash flows resulting in of the dividend growth rate leading to In share price Select the best answers from the drop-down menus) Enter your answer in each of the answer boxes your student email addres sand password O i Data Table U the nearest whole e effect on the resultin ease in its dividend gra ease in its risk premiun each share of a ed return on Craft's stog (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below cash price that Hamlir Dividend per Share vidend growth rate deco (Round to the neisto Year 2019 2018 2017 2016 2015 2014 $2.83 $2.65 $2.47 $2 31 $2.16 $2.02 premium decreases to cent Fequired return, the maxi Y For Craft reflected Print Done nction of the current divid und growth rate in share pride answer in each of the answer boxes your student email addres sand password