2. Problem 18-05 (Pricing Stock Issues in an IPO) 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 $55 million. Zang currently has 4 million shares outstanding and will issue 1.8 million new shares. ESM charges a 5% spread. What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent. $ How much cash will Zang raise net of the spread (use the rounded offer price)? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $