Consider NewPharma Inc., a pharmaceutical company, which recently received approval for the production and marketing of its anti-Covid tablets, which is why today NewPharma is planning to invest in the production of these tablets. It is known that today its earnings per share (EPS) was $1.56, and that it has paid dividends at the end of each year, which will continue in the following years. NewPharma plans to pay only 20% of its annual earnings as dividends over the next 3 years to generate rapid earnings growth of 35% per year, and then pay 50% of its annual earnings as dividends for the following years when it is expected that the earnings growth will be 10% per year. Assume that NewPharma investors require an effective annual return of 16%. Calculate the share price today (t=0). [Seleccionar ] Some analysts estimate that NewPharma's share price will reach $70 in 10 years (t=10). To do this, they assumed that NewPharma's earnings per share growth in the first 3 years will remain at 35% per year and stabilize at 15% per year after the third year. If the dividend payout rate will remain constant at 20% for all years, then what is the assumption that analysts made about the required effective annual return by investors? [Seleccionar ]