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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 $1.55. The growth rate (g) is 8 percent and the discount rate (Ke) 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.)
b. If there is a 3 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.)
c. If the issuing corporation requires a net price of $76.00 (proceeds to the corporation) and there is a 3 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.)
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Compute POP's net income for the year and - Compute POP's return on equity (ROE).- POP has no preferred stock.
What is the sample standard deviation of the above returns?
Dan is considering the purchase of Super Technology, Inc. bonds that were issued 7 years ago. What is yield to maturity on bonds if you purchased bond today?
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