The stock of R. J. Enterprises (RJE) Ltd. Is currently trading at the Feni Stock Exchange (FSE) at Tk.50 per share. The stock paid a per share dividend of Tk.3.00, which is expected to grow at a constant rate of 7 percent per year. The all-share market return at FSE is 13% and the risk free return is 4 percent. The RJE stock has a beta coefficient of 0.60.

1. What value would you estimate for RJE stock?
2. What would be your investment strategy with respect to RJE stock?