Consider the pharmaceutical company, Seltaeb Corp which is weathering the current environment well through its development of anti$-$virus drugs. While last year$$s earnings from existing projects $($steady$-$state earnings$)$ were $$3$ per share, analysts are forecasting that Seltaeb will experience two years of abnormally high growth of $25\%$ before settling down to a normal growth rate of $5\%$ in year $3$ and beyond.

Seltaeb paid an annual dividend of $$4$ per share last year and the CEO has announced that dividend payments will mirror the growth in the company going forward.

Assume that the current risk$-$free rate of interest is $2\%,$ the expected long$-$run return of the S&P$500$ index is $10\%$ and Seltaeb$$s beta is $1\mathrm{.}5$

What is the market$$s estimate of Seltaeb$$s present value of growth opportunities?