Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,000,000 shares of common stock. Currently. 1,400,000 shares are outstanding, and 00,000 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 by the data given and your finding in part a, do you think the firm will 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? a. The maximum number of new shares of common stock that the firm can sell without receiving further authorization is 19 20 21 shares. (Round to the nearest whole number.) 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? (Select the best answer below.) 23 24 25 O A. No, the firm will require an additional 600,000 authorized shares to raise the 0 B. Yes, the firm will be able to raise the needed funds without receiving further C. No, the firm will require an additional 200,000 authorized shares to raise the 26 S 27 S 28 S 29 St necessary funds. authorization. 32 BE necessary funds. 0 D. No, tie firm will require an additional 100,000 authorized shares to raise the 34 35 necessary funds. 36 c. What must the firm do to obtain authorizat found in part a? (Select the best answer below.) tion to issue more than the number of shares 39 Portf 40 Stock Stock 42 Stock Click to select your answer(s)