2. To determine the change in value, multiply the change in stock price by the number of shares outstanding. The number of shares outstanding around those dates can be found by going to the company's investor relations Web site. Start at http://www.vandapharma.com and then click "Investor Relations." Next, select the "SEC Filings" link on the left side of the screen, and locate the 10-Q from May 11, 2009. The fastest way to do this is to select "Quarterly Filings" from the drop-down menu under Groupings Filter and then click "Search." Next, click the Excel symbol in the "5/11/09 10-Q" row and open the Excel spreadsheet. In the Balance Sheet tab, under the March 31, 2009 column, you will find the number of shares of Common Stock (in thousands) as of March 31, 2009. Because the change in value represents the "expected" NPV of the project, you will have to find the annual net cash flows that would provide this NPV. For this analysis, you will need to estimate the cost of capital for the project. We show how to calculate the cost of capital in subsequent chapters; for now, use the New York University (NYU) cost of capital Web site (http://pages.stern.nyu.edu/~adamodar/New_ Home Page/datafile/wacc.htm). Locate the cost of capital in the far-right column for the "Biotechnology" industry.