Q2 - Review Picture.

The investment dealer of Saskatchewan Cloud Inc. uses a dividend valuation model to appraise the shares of Lambert Aerospace Company. Dividends (D;) at the end of the current year will be $1.30. The growth rate (g) is 9 percent and the discount rate (Ke) is 14 percent. (Round the intermediate calculations and the final answer to 2 decimal places.) a. What should be the price of the stock to the public? Price of the stock LA b. If there is a 7 percent total underwriting spread on the stock, how much will the issuing corporation receive? Net price to the corporation c. If the issuing corporation requires a net price of $ 24.50 (proceeds to the corporation) and there is a 7 percent underwriting spread, what should be the price of the stock to the public? Price of the stock to the public