A local company just paid an annual dividend of $$3\mathrm{.}50$ per share, which is expected to grow by $7\%$ per year, has a beta of $1\mathrm{.}2,$ a risk free rate of of $5\%,$ and the market return is $10\%.$ According to the dividend discount modle, the stock price should be$?$ The answer is $$87\mathrm{.}50,$ please lay out all steps clearly.