Integrativelong dashRisk and valuation, Giant Enterprises' stock has a required return of 12.2 %. The company, which plans to pay a dividend of $2.07 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2009-2015 period, when the following dividends were paid:

Year	Dividend per Share
2015	$1.95
2014	$1.84
2013	$1.74
2012	$1.64
2011	$1.55
2010	$1.46
2009	$1.38 a. If the risk-free rate is 9 %, what is the risk premium on Giant's stock? b. Using the constant-growth model, estimate the value of Giant's stock.( Hint: Round the computed dividend growth rate to the nearest whole percent.) c. Explain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock.