The investment dealer of Saskatchewan Cloud Inc. uses a dividend valuation model to appraise the shares of Lambert Aerospace Company. Dividends (D₁) at the end of the current year will be $1.20. The growth rate (g) is 7 percent and the discount rate (K_e) is 12 percent.

a. What should be the price of the stock to the public?

Price of the stock $

b. If there is a 6 percent total underwriting spread on the stock, how much will the issuing corporation receive? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Net price to the corporation $

c. If the issuing corporation requires a net price of $23.50 (proceeds to the corporation) and there is a 6 percent underwriting spread, what should be the price of the stock to the public?

Price of the stock to the public $