Jeopardy Inc. has earnings that have been growing at 30% per year. Next year's earnings are projected to be $0.35 per share. The managers at Jeopardy are aware that this growth will slow soon. In part, this awareness comes from the fact that investment opportunities are thinner than they once were. Managers anticipate that after next year's earnings, earnings growth will slow to 20% per year for two years. A dividend payment will be initiated at this point [paid in year 3), and going forward from then it is expected that earnings growth will stabilize at 4% per year in perpetuity. Expected payout for the initial and on-going dividends is 60% (ie. the % of earnings paid out as dividends is 60%). Jeopardy's required return is 8% per year. Jeopardy is an all-equity company, and plans on staying that way. Value a share of Jeopardy stock as of today. Xylitor is a relatively new hiotech firm, with an exciting new product that is anticipated to come to market in approximately 2 years {following regulatory approval of the product, which is Xylitor's first). A share of Xylitor is trading at $25. Xylitor has not paid a dividend yet, but anticipates initiating a dividend in 3 years (again, after approval of the product). The required return on Xylitor is 12% per year. Assuming the pmjeccompany is considered to he a perpetuity, if earnings per share for the new product (after approval] are anticipated to be $5.00 per share, and the dividend payout will be 100% of earnings (i.e. the % earnings paid out as dividends is 100%}, what is your best estimate about the market's probability of product approval