You are running Starlight Genomics, a hot biotech company. Analysts predict that its earnings will grow at 35% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 4% per year and continue at that level forever. Your company has just announced earnings of $1,750,000. It has no debt outstanding. a. What is the cost of capital of Starlight Genomics if the 10-year Treasury bond is at 3.5%, the market risk premium is 5.0%, and its beta is 1.5? b. What is the present value of Starlight Genomics' future? (Assume all cash flows occur at the end of the year.)