Assume a major investment service has just given Big Lake Realty its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find: This year, Big Lake paid its stockholders an annual dividend of $5.02 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 8 % a year for the next five years and then to level out at 5 % a year. So far, you've learned that the stock has a beta of 1.19 , the risk-free rate of return is 2.2 %, and the expected return on the market is 10.7 %.

Using the CAPM to find the required rate of return, put a value on this stock.

Using the CAPM, the required rate of return on the investment is ______ %. (Round to two decimal places.)

The value of the company's stock is $ _____ . (Round to the nearest cent.)