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 $58 million. Zang currently has 3 million shares outstanding and will issue 1.3 million new shares. ESM charges a 7% spread.
Problem 1: What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent.
Problem 2: 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.