1. Aspin Corporations charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding, and 100,000 shares are being held as treasury stock. The firm wishes to raise $48,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $60 per share.

• a.What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders?
• b.Judging on the basis of the data given and your finding in part a, will the firm be able to raise the needed funds without receiving further authorization?
• c.What must the firm do to obtain authorization to issue more than the number of shares found in part a?