SinclairPharmaceuticals, a small drugcompany, develops a vaccine that will protect against Helicobacter pylori, a bacteria that is the cause of a number of diseases of the stomach. It is expected that Sinclair Pharmaceuticals will experience extremely high growth over the next three years and will reinvest all of its earnings in expanding the company over this time. Earnings were $1.25 per share before the development of the vaccine and are expected to grow by40% per year for the next three years. After thistime, it is expected growth will drop to 6% and stay there for the expected future. Four years from now Sinclair will pay dividends that are75% of its earnings. If its equity cost of capital is 11%, what is the value of a share of Sinclair Pharmaceuticalstoday?

A.

$31.90

B.

$39.88

C.

$54.54

D.