perpetuity.

Alexion has also continued to fund research into new products, generally spending about $150 million per year (in the most recent year), which are expected to grow 10% per year for the next 10 years and 5% per year thereafter. Given the nature of such risky research, a 5% risk premium over and above the current WACC is warranted. It was assumed that every dollar invested in research would create $ 1.25 in value in patents for the next 10 years, and break even after that (i.e., generate $ 1 in patent value for every $ 1 invested in R&D).

Estimate the value per share of Alexion, assuming there are 40 million shares outstanding and current interest-bearing debt at $300 million.