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What is the correctly valued offer price

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Question - 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 1.9 million new shares. ESM charges a 7% spread.

Required -

What is the correctly valued offer price? Do not round intermediate calculations.

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

Reference no: EM133179713

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