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Cloud4All is going public. 7 million shares will be offered. Companies of this type can have $130 million if high value with 30% probability, or

image text in transcribed Cloud4All is going public. 7 million shares will be offered. Companies of this type can have $130 million if high value with 30% probability, or $40 million if low value with 70% probability. Informed investors request 2 million shares if high value. Uninformed investors request 6 million shares in all cases because they cannot distinguish. What should be the Offer Price of this IPO so that uninformed investors break even? What would be the profit for informed investors

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