USE EXCEL TO SOLVE. Richard Enterprises' stock has a required return of $14\mathrm{.}2\%.$ The company, which plans to

pay a dividend of $$3\mathrm{.}50$ per share in the coming year, anticipates that its future dividends

will increase at an annual rate consistent with that experienced over the $2017-2023$ period

when the following dividends were paid:

a$.$ If the risk$-$free rate is $2\%,$ what is the risk premium on Richard's stock?

b$.$ Using the constant$-$growth model, estimate the value of Richard's stock.

c$.$ Explain what effect, if any, a decrease in the risk premium would have on the value of

Richard's stock.