Discussion Problem: Kampfire, Inc., a very successful manufacturer of camping equipment, is considering "going public" next month to raise funds to help finance the company's future growth. The financial manager of Kampfire has approached the investment banking firm at which you work seeking help with its decision. Your boss asked you to explain to the financial manager the nature of the U.S. financial markets and the process of issuing equity to raise funds. To help with this task, your boss asked you to answer the following questions in explaining the U.S. financial system to the financial manager. 1. Describe the investment banking process as it relates to initial public offerings (IPOs). 2. Kampfire estimates it needs $25 million to support its expected growth. The underwriting fees charged by the investment banking firm for which you work are 6.5 percent for such issue sizes. In addition, it is estimated that Kampfire will incur $245,000 in other expenses related to the IPO. If your analysis indicates Kampfire's stock can be sold for $10.80 per share, how many shares must be issued to net the company the $25 million it needs