Integrative-Risk and Valuation Hamin Sleel Company wishes to determine the velue of Craft Foundry, a form that it is consideriog acquiring for cash. Hamlin wishes to determine the appicable discount rate to use as an input to the constant-growth valuation model. Craft's stock is not publicly traded. After studying the required returns of firms simias to Craft that are publicly traded, Hamin believos that an appropriate risk premiam on Craft stock is about 8%. The risk-tree rale is currenty 6%. Craft's dividend per share foc each of the past 6 years is shown in the following table- a. Given that Craft is expected to pay a dividend of $2.53 next year, determine the maximum cash price that Hamlin should pay for each share of Cratt. (Hint: Round the growth rate to the nearest whole percent.) b. Describe the effect on the resuning value of Crat 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 premium to 7%. a. The required return on Cratts stock is 14%. (Round to the nearest whole percentage.) The mavimum cash price that Hamlin should pay for each share of Craft is s (Round to the nearest cent.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)