Red Corporation stock currently sells for $60 per share. There are 2 million shares currently outstanding. The company announces plans to raise $10 million by offering shares to the public at a price of $60 per share. If the underwriting spread is 10 %, how many shares will the company need to issue in order to be left with net proceeds of $10 million? Enter your answer as a whole number not in millions. ( For example, 1,000,000 not 1 million.) Shares = 185185 Correct response: 185, 185+10 If other administrative costs are $60,000, what is the dollar value of the total direct costs of the issue? Assume that 185,185 shares are issued. Enter your answer as a whole number. Direct costs = 245185 Correct response: 1,171,110-10 If the share price falls by 2% at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect to existing shareholders? Enter your answer as a whole number. Total cost = Number