Question
the investment firm of A. Einstien and Co. will use a dividend valuation model to appraise the shares of the Modern physics corp.. Dividends at
the investment firm of A. Einstien and Co. will use a dividend valuation model to appraise the shares of the Modern physics corp.. Dividends at the end of the current year will be $1.60. the growth rate G is 12% and the discount rate is 15%. a. Price of the stock? b. If there is a 5% total underwriting spread on the stock how much will the issuing Corporation receive? Net price of the Corporation - c. if the issuing Corporation requires a net price of $51.83 and there is a 5% underwriting spread what should be the price of the stock to the public?
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