Question: ( please include steps, i will make sure to rate answer if its correct < 3 ) BK Pharm recently paid $ 2 per share.

(please include steps, i will make sure to rate answer if its correct
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3
)BK Pharm recently paid $2 per share. The company just got a patent for a new drug and
the patent right expires at the end of 5th year. Financial analysts now estimate that the
company will grow at a rate of 25% until the patent right expires and at normal rate of
8% thereafter. The required rate of return on BK stock is 15%.
a. Estimate expected dividends for next 5 years
b. Estimate the stock price at the end of 5th year
c. Find the value of stock today.

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