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please help! The investment banking firm of Einstein & Company will use a dividend valuation model to appraise the shares of the Modern Physics Corporation.
please help!
The investment banking firm of Einstein & Company will use a dividend valuation model to appraise the shares of the Modern Physics
Corporation. Dividends at the end of the current year will be $ The growth rate is percent and the discount rate is
percent.
a What should be the price of the stock to the public?
Note: Do not round intermediate calculations and round your answer to decimal places.
Price of the stock
b If there is a percent total underwriting spread on the stock, how much will the issuing corporation receive?
Note: Do not round intermediate calculations and round your answer to decimal places.
Net price to the corporation
c If the issuing corporation requires a net price of $proceeds to the corporation and there is a percent underwriting spread,
what should be the price of the stock to the public?
Note: Do not round intermediate calculations and round your answer to decimal places.
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