The Do Drop Inn requires $2 million to expand its dining room and catering services. The firm's underwriters require a 5.5 % spread and have set the stock price at $38 a share. The estimated issue costs are $145,000. How many shares of stock will Do Drop need to sell if it has a firm commitment underwriting?

A.

46,800 shares

B.

59,733 shares

C.

55,695 shares

D.

61,024 shares

E.

56,447 shares