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What is the correctly valued offer price

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Problem - Pricing Stock Issues in an IPO Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang's current value of equity is $61 million. Zang currently has 5 million shares outstanding and will issue 1.5 million new shares. ESM charges a 6% spread.

Required -

1. What is the correctly valued offer price?

2. How much cash will Zang raise net of the spread (use the rounded offer price)?

Reference no: EM132859666

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