Integrative-Risk and valuation Giant Enterprises' stock has a required return of 14.9%. The company, which plans to pay a dividend of $2.03 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: 5 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. a. If the risk-free rate is 9%, the risk premium on Giant's stock is %. (Round to one decimal place.) b. Using the constant-growth model, the value of Giant's stock is $. (Round to the nearest cent.) c. Explain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock. (Select from the drop-down menus.) A decrease in the risk premium would the required rate of return, which in turn would the price of the stock. increase decrease (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2015 2014 2013 2012 2011 2010 Dividend per Share e $1.92 $1.81 $1.70 $1.61 $1.52 $1.43 $1.35 2009