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.