NIKE Inc. is currently an all-equity firm with 2 million shares outstanding and a market capitalization of $50 million. The firm is considering borrowing $22 million and using the funds to buy back shares of the firm. The firm has an annual EBIT of $5 million in perpetuity. The cost of debt is 8.0% annually.

Joe is a shareholder of NIKE Inc, owning $30,000 worth of shares of the firm. There are no taxes, transactions costs or costs of financial distress. Joe likes the payoffs under the current capital structure. If the firm decides to adopt the proposed capital structure, how many shares should Joe sell (and deposit the proceeds in the bank) in order to receive the same payoffs as he would have had under the current capital structure?