4. (15 points) Simpson Pharmaceuticals, a small drug company, is considering developing a vaccine that will protect against a form of bacteria that is the cause of a number of diseases of the stomach. Before the development of the vaccine, earnings were $1.10 per share, expected to grow at 5%, and the payout ratio is 75%. Under the development plan, earnings are expected to grow by 40% per year for the next three years and all earnings will be retained and reinvested. After this time, it is expected that growth will drop to 5% and stay there for the expected future. At that time, Simpson will pay dividends that are 75% of its earnings. If its equity cost of capital is 12% in either case, what is the value of a share of Simpson Pharmaceuticals with and without the development of the vaccine