The investment banking firm of Einstein & Co. will use a dividend valuation model to appraise the shares of the Modern Physics Corporation. Dividends (D₁) at the end of the current year will be $1.50. The growth rate (g) is 6 percent and the discount rate (K_e) is 10 percent.

a.	What should be the price of the stock to the public? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Price of the stock

$

b.	If there is a 5 percent total underwriting spread on the stock, how much will the issuing corporation receive? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Net price to the corporation

$

c.	If the issuing corporation requires a net price of $36.00 (proceeds to the corporation) and there is a 5 percent underwriting spread, what should be the price of the stock to the public? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Necessary public price

$