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Part $1$

Consider a SPAC with the following$$ terms:

bullet $180$ million units issued at $$$$10\mathrm{.}00$ per share.

bullet Promote equal to $20\%$ of the SPAC ownership.

bullet $35$ million total warrants with an exercise price of $$$$11\mathrm{.}50$ per share.

bullet No PIPE investors.

a$.$ What is the size of the promote$($number of shares in$$ millions$)?$

b$.$ Suppose $80\%$ of the shareholders redeem their$$ shares, and no warrants are exercised. What is the amount of cash per share contributed by the SPAC in this$$ case?

c$.$ If the target is offered $260$ million$$ shares, what is the implied valuation of the combined company in this$$ case?