Challenging Falcism Research & Science is a rapidly growing…
Challenging Falcism Research & Science is a rapidly growing biomedical company. Due to a series of new government contracts, they will rapidly grow over the next two years and then mature into a stable company. The firm’s dividends are expected to match this pattern. Falcism just paid an $0. dividend per share today. The company pays its dividend annually. Due to the rapid growth, their annual dividend will double (i.e., grow by 100 percent) each of the next two years. After two years, the dividends will grow at a stable percent per year indefinitely. If biomedical companies such as Falcism should return percent per year, what is the price (or financial value) of one share of Falcism stock? (round your answer to the nearest $0.01)