Pricing Stock Issues in an IPO Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to

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Pricing Stock Issues in an IPO Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to

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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 agreethat Zang's current value of equity is $55 million. Zang currentlyhas 3 million shares outstanding and will issue 1.2 million newshares. ESM charges a 5% spread.
What is the correctly valued offer price? Do not roundintermediate calculations. Round your answer to the nearestcent.
$
How much cash will Zang raise net of the spread (use the roundedoffer price)? Write out your answer completely. For example, 5million should be entered as 5,000,000. Round your answer to thenearest dollar.
$
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