Integrative-Risk and valuation Giant Enterprises' stock has a required return of 13.1%. The company, which plans to pay a dividend of $2.36 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2013-2019 period, when the following dividends were paid: a. If the risk-free rate is 5%, 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. a. If the risk-free rate is 5%, the risk premium on Giant's stock is \%. (Round to one decimal place.) \begin{tabular}{cc} \hline Year & Dividend per Share \\ \hline 2019 & $2.21 \\ 2018 & $2.06 \\ 2017 & $1.93 \\ 2016 & $1.80 \\ 2015 & $1.68 \\ 2014 & $1.57 \\ 2013 & $1.47 \\ \hline \end{tabular}