1) IPO Pricing. The following material represents the cover page and summary of the prospectus for the initial public offering of the Pest Investigation Control Corporation (PICC), which is going public tomorrow with firm commitment initial public offerings managed by the investment-banking firm of Erlanger and Ritter. Answer the following questions: a. Assume that you know nothing about PICC other than the information contained in the prospectus. Based on your knowledge of finance, what is your prediction of price of PICC tomorrow? Provide a short explanation of what you think this occur. b. Assume that you have several thousand dollars to invest. When you get home from class tonight, you find that your stockbroker, whom you have not talked to for weeks, has called. She has left a message that PICC is going public tomorrow and that she can get you several hundred shares at the offering price if you call her back first thing in the morning. Discuss the merits of this opportunity.

200,000 shares PEST INVESTIGATION CONTROL CORPORATION Of the shares being offered hereby, all 200,000 are being sold by the Pest Investigation Contrel Corporation, Inc. (the Company"). Before the offering there has been no public market for the shares of PICC, and no guarantee can be given that any such market wil develop. These securities have not been approved or disapproved by the SEC nor has the commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. Proceeds to Underwriting Discount Price to Company Public $1.10 $9.90 $1,980,000 Per share $11.00 $220,000 Total $2.200,000 "Before deducting expenses estimated at $27,000 and payable by the Company This is an initial public offering. The common shares are being offered, subject to prior sale, when, as, and if delivered to and accepted by the Underwriters and subject to approval of certain legal matters by their Counsel and by Counsel for the Company. The Underwriters reserve the right to withdraw, cancel, or modify such offer and to reject offers in whole or in part. Erlanger and Ritter, Investment Bankers July 12, 2010 Prospectus Summary The Pest Investigation Control Corporation (PICC) breeds and markets toads and tree frogs as ecologically safe insect-control The Company mechanisms. 200,000 shares of common stock, no par value. The Company will seek listing on NASDAQ and will trade over the counter. The Offering Listing As of June 30, 2010, 400,000 shares of common stock were outstanding. After the offering. 600,000 shares of common stock will be outstanding. To finance expansion of inventory and receivables and general working capital, and to pay for country club memberships for certain finance professors. Shares Outstanding Use of Proceeds Selected Financial Information (amounts in thousands except per-share data) Fiscal Year Ended June 30 2010 2008 2009 $240.00 S60.00 $120.00 Revenues 36.10 3.80 15.90 Net earnings .09 .01 04 Eamings per share As of June 30, 2010 As Adjusted for This Offering Actual $1,961 Working capital 511 2,464 Total assets 423 2,376 Stockholders' equity 200,000 shares PEST INVESTIGATION CONTROL CORPORATION Of the shares being offered hereby, all 200,000 are being sold by the Pest Investigation Contrel Corporation, Inc. (the Company"). Before the offering there has been no public market for the shares of PICC, and no guarantee can be given that any such market wil develop. These securities have not been approved or disapproved by the SEC nor has the commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. Proceeds to Underwriting Discount Price to Company Public $1.10 $9.90 $1,980,000 Per share $11.00 $220,000 Total $2.200,000 "Before deducting expenses estimated at $27,000 and payable by the Company This is an initial public offering. The common shares are being offered, subject to prior sale, when, as, and if delivered to and accepted by the Underwriters and subject to approval of certain legal matters by their Counsel and by Counsel for the Company. The Underwriters reserve the right to withdraw, cancel, or modify such offer and to reject offers in whole or in part. Erlanger and Ritter, Investment Bankers July 12, 2010 Prospectus Summary The Pest Investigation Control Corporation (PICC) breeds and markets toads and tree frogs as ecologically safe insect-control The Company mechanisms. 200,000 shares of common stock, no par value. The Company will seek listing on NASDAQ and will trade over the counter. The Offering Listing As of June 30, 2010, 400,000 shares of common stock were outstanding. After the offering. 600,000 shares of common stock will be outstanding. To finance expansion of inventory and receivables and general working capital, and to pay for country club memberships for certain finance professors. Shares Outstanding Use of Proceeds Selected Financial Information (amounts in thousands except per-share data) Fiscal Year Ended June 30 2010 2008 2009 $240.00 S60.00 $120.00 Revenues 36.10 3.80 15.90 Net earnings .09 .01 04 Eamings per share As of June 30, 2010 As Adjusted for This Offering Actual $1,961 Working capital 511 2,464 Total assets 423 2,376 Stockholders' equity