BigCo is buying LittleCo. Before the merger, BigCo had a yearly EBIT of $3M and a cost of equity of 12%. Before the merger, LittleCo had a yearly EBIT of $1M and a cost of equity of 17%. After the merger, the combined firm will have an EBIT of $6M. The tax rate is 35%, and the merger will require BigCo to increase their net working capital by $500,000. BigCo currently has 2M shares outstanding, and LittleCo currently has 700,000 shares outstanding.

C. BigCo is planning in paying 80% in cash, 20% in shares. How many new shares should they issue to compensate LittleCo shareholders?