PROBLEM $1$: Authorized Shares

Rizal Corporation is authorized to issue $2,000,000$ shares of common stock. Currently, it has $1\mathrm{.}4$M outstanding shares while $100,000$ shares are being held as treasury stock. The company is raising $$48M$ for a plant expansion. Its discussion with its investment bankers indicated that the sale of new common stock will net the firm $$60$ per share.

Questions:

a$.$ What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders?

b$.$ Judging on the basis of the data given and your finding in part a$,$ will the firm be able to raise the needed funds without receiving further authorization?

c$.$ What must the firm do to obtain authorization to issue more than the number of shares found in part a$?$