Blue Corporation stock currently sells for $30 per share. There are 8 million shares currently outstanding. The company announces plans to raise $8 million by offering shares to the public at a price of $30 per share.

a) If the underwriting spread is 6 %, how many shares will the company need to issue in order to be left with net proceeds of$8 million?

Enter your answer as a whole number not in millions.( For example, 1,000,000 not 1 million.)

Shares=

b) If other administrative costs are $30,000, what is the dollar value of the total direct costs of the issue? Assume that 283,688 shares are issued.Enter your answer as a whole number.

Direct costs=

c) If the share price falls by 2 % at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect to existing shareholders?Enter your answer as a whole number.

Total cost=