Question
I have a question about a homework problem. Please see attachment. Please show the work in Excel: Ch 18: public and private financing: initial offerings,
I have a question about a homework problem. Please see attachment.
Please show the work in Excel:
Ch 18: public and private financing: initial offerings, seasoned offerings, and investment banks
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 $60million. Zang 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? How muchcash will Zang raise net of the spread?
Please show the work in Excel: Ch 18: public and private financing: initial offerings, seasoned offerings, and investment banks 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 $60million. Zang 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? How muchcash will Zang raise net of the spread Step by Step Solution
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
