The risk$-$free rate is currently $5\%.$ Craft's dividend per share for each of the past $6$ years is shown in the following table: $.$

b$.$ Describe the effect on the resulting value of Craft from:

$(1)$ A decrease in its dividend growth rate of $2\%$ from that exhibited over the $2014-2019$ period.

$(2)$ A decrease in its risk premium to $6\%.$

a$.$ The required return on Craft's stock is $\%.($Round to the nearest whole percentage.$)$

The maximum cash price that Hamlin should pay for each share of Craft is $9,($Round to the nearest cent.$)$

b$.(1)$ If the dividend growth rate decreases by $2\%,$ the maximum cash price that Hamlin should pay for each share of Craft is $$.($Round to the nearest cent.$)$

$(2)$ If the risk premium decreases to $6\%,$ the required return on Craft's stock is $\%.($Round to the nearest whole percentage.$)$

With a $11\%$ required return, the maximum cash price that Hamlin should pay for each share of Craft is $9,($Round to the nearest cent.$)$

Price is a function of the current dividend,

$,$ and the risk$-$free rate, and the company$-$specific

For Craft, the lowering of the dividend growth rate

future cash flows resulting in

in share price. The decrease in the risk premium reflected

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below

into a spreadsheet.$)$