The Beranek Company, whose stock price is now $20, needs to raise $20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $17 per share because of signaling effects. The underwriters' compensation will be 3% of the issue price, so Beranek will net $16.49 per share. The firm will also incur expenses in the amount of $110,000. How many shares must the firm sell to net $20 million after underwriting and flotation expenses? Do not round intermediate calculations. Round your answer to the nearest whole number.

shares

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 is $65 million. Zang currently has 3 million shares outstanding and will issue 1.7 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? Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Do not round intermediate calculations. Round your answer to three decimal places.

$ million