You are an analyst with a leading equity research firm. You have the following data:

Next year Roll Steel Ltd. Is expected to pay 80% dividend.You found that the, YTM of 10-year government bond is 7.8%.The market return is likely to be 250 basis point over and above the government bond yield. Calculate the stock price of the company, if the variance of the market is 0.45. You found that the covariance of the market and the stock is 0.65.