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The Beranek Company, whose stock price is now $35, needs to raise $21million in common stock. Underwriters have informed the firm's management that they must
The Beranek Company, whose stock price is now $35, needs to raise $21million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $31per share because of signaling effects. The underwriters' compensation will be7% of the issue price, so Beranek will net $28.83per share. The firm will also incur expenses in the amount of $130,000. How many shares must the firm sell to net $21million after underwriting and flotation expenses? Round your answer to the nearest whole number.
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