Question
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
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 $60 million. 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 much cash will Zang raise net of the spread?
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Artificial Intelligence A Modern Approach
Authors: Stuart Russell, Peter Norvig
4th Edition
9780134610993
