ABC Airways is introducing a new fleet of planes and needs to raise $28.1976 million (net of underwriting cost) to fund an expansion. If the offer price is $4 and the underwriters require a 7 per cent spread on the transaction, how many shares does the company need to issue (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)

Select one:

a. 7.580

b. 32.602

c. 3.738

d. 3.720