FosterEnterprises' stock is trading for $50 per share and there are currently 7 million shares outstanding. It would like to raise $95million. If its underwriter charges 8%of grossproceeds,

a. How many shares must itsell?

b. If it expects the stock price to drop by 1% upon announcement of theSEO, how many shares should it plan tosell?

c. If all of the shares are primary shares and are sold to newinvestors, what percentage reduction in ownership will all of the existing shareholdersexperience?