Dode Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it
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Dode Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Dode and ESM agree that Zang’s current value of equity is $60 million. Dode currently has 4 million shares outstanding and will issue 1 million new shares. ESM charges a 7% spread. What is the correctly valued offer price, rounded to the nearest penny? How much cash will Dode raise net of the spread (use the rounded offer price)?
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Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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