Use this information for the next $2$ questions:

On December $3,$ Creative Computers $($CC$)$ held an IPO for $20\%$ of the shares of its subsidiary, Ubid $($UBID$).$ It announced that in $6$ months, it would spin$-$off the remaining $80\%$ of UBID shares, whereby shareholders of CC would receive $0\mathrm{.}72$ shares of UBID for each $1$ share of CC$.$ Suppose that on the close of trading the day after the IPO you observe the following prices:

$P_{CC}=$$$22\mathrm{.}75,P_{\text{U}\text{B}\text{I}\text{D}}=$$$35\mathrm{.}69$

Question $7$

$2$ pts

What is the $ stub value of Creative Computers? $($e$.$g$.,$ What is the implied value the market has placed on the stand$-$alone assets of Creative Computers that are unrelated to Ubid assets$).$

$-2\mathrm{.}95$

$0$

$-12\mathrm{.}94$

$1\mathrm{.}32$

$-5\mathrm{.}32$

If the market thought that the stub value of Creative Computers was zero $($e$.$g$.,$ Creative Computers standalone assets were worthless$),$ what should be the market price of CC $(($:$P_{CC}\}?$

$$32\mathrm{.}74$

$$35\mathrm{.}69$

$$25\mathrm{.}70$

$$22\mathrm{.}75$