The investment banking firm of Einstein & Co. will use a dividend valuation model to appraise the shares of the Modern Physics Corporation, Dividends at the end of the current year will be $1.64. The growth rate is 8% and the discount rate is 13%.

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

b) If there is 7% total underwriting spread on the stock, how much will the issuing corporation receive?

c) If the issuing corporation requires a net price of $31.30 (proceeds to the corporation) and there is a 7% underwriting spread, what should be the price of the stock to the public? (round to two places to the right of the decimal point).