IntegrativeRisk

and ValuationGiven the following information for the stock of Foster Company, calculate the risk premium on its common stock.(Click on the icon here

in order to copy the contents of the data table below into a spreadsheet.)

Current price per share of common stock	$55.73
Expected dividend per share next year	$1.47
Constant annual dividend growth rate	5.9%
Risk-free rate of return	6.3%

Question content area bottom

Part 1

The risk premium on Foster stock is

enter your response here%.

(Round to two decimal places.)