Question: please answer both 2. Problem 18-05 (Pricing Stock Issues in an 1P0) Pricing Stock Issues in an IPO Zang industries has hired the investment banking

please answer both

2. Problem 18-05 (Pricing Stock Issues in an 1P0) Pricing Stock Issues in an IPO Zang industries has hired the investment banking firm of Eric, 5 chwartz, 8 Manin (ESM) to help it go public. Zang and ESM agree that Zang's current value of equity is $55 million. Zang currently has 4 million shares outstanding and will issue 1.2 million new shares. ESM charges a 9% spread. What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent. 5 How much cash will zang raise-net of the spread (use the rounded offer pice)? Write out your answer completely. For example, 5 millith should be entered as 5.000,000, Round yout answer, to the nearest dollaf. 5

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