Caspian Water needs to raise $59.00 million by issuing additional shares of stock. If the market estimates Caspian Water will pay a dividend of $2.12 next year (D1 = 2.12), which will grow at 3.99% forever and the cost of equity to be 12.82%, then how many shares of stock must the firm sell?

1) None of the answers in this list is within 100 shares of the correct answer.

2) 915,939

3) 2,457,406

4) 4,128,970

5) 312,890

6) 2,975,934