Disturbed Corp. needs to raise $62.5 million to fund a new project. The company will sell shares at a price of $24.80 in a general cash offer and the company's underwriters will charge a spread of 7 percent. The direct flotation costs associated with the issue are $1,000,000 and the indirect costs are $555,000. How many shares need to be sold?

Multiple Choice

• 2,777,272 shares

• 2,392,976 shares

• 2,520,161 shares

• 2,648,717 shares

• 2,376,206 shares