Question 8 (2 points) While out for lunch, your friend (who is a corporate lawyer) accidentally reveals to you that a pharmaceutical company retained by her firm is preparing to announce a successful vaccine trial, something unbeknownst to the public. The companys stock is currently trading at $49.08 per share and based on what you know from firm disclosures, a successful vaccine trial is expected to lead to $80,000,000.00 in earnings evenly spread over the next twenty years (the timeline until a generic drug from a competitor will be available). All these additional earnings would be paid out in dividends at the end of each year, starting in one year. The company@s market capitalization currently stands at $147,000,000.00 and the stock has never paid a dividend. The market risk premium is 6.0%, risk-free rate is 2.0% and the stocks beta is 1.5. If you have $17,000.00 to invest in this stock, how much would you expect your investment to be worth in a year, assuming 1) you invest prior to the trial announcement, and 2) strong form market efficiency? (Note: this question is for illustrative teaching purposes only and this type of behaviour is NOT recommended). The expected value of the investment in one year is $19,040.00. The expected value of the investment in one year is $18,870.00. The expected value of the investment in one year is $22,958.93. The expected value of the investment in one year is $18,360.00