ABC Co. needs to raise $42 million to finance its expansion into new markets. The company will sell new shares of equity to raise the needed funds. The offer price is $40 per share and the companys underwriters charge a spread of 6 percent and legal and administrative fees are $100,000.

1. What are the gross proceeds? Round your final answer to nearest whole number (do not round to millions).

to calculate the gross proceeds Gross proceeds = (net proceeds+ other fees)/(1- u/w fee%)

2.How many shares need to be sold? Answer in total shares (do not round to millions)

3. What will be the underwriters' fees? (Round to nearest whole number. Do not round to millions)

to calculate U/W fees = gross proceeds - net proceeds