Ballad Companys stock is expected to generate a dividend of P27 next year. The stock has a beta of 1.3, the risk-free interest rate is 6%, and the expected return of the market is 11%.

1. Per CAPM, what should be the required return of Ballads stock? Indicate your final answer in decimal form with 4 decimal places.

2. Using the CAPM return, compute for Ballads stock price assuming a constant dividend stream.