The Mann Company belongs to a risk class for which the appropriate discount rate is 15 percent. Mann currently has 152,000 outstanding shares selling at $125 each. The firm is contemplating the declaration of a $5 dividend at the end of the fiscal year that just began. Assume there are no taxes on dividends. Answer the following questions based on the Miller and Modigliani (MM) model, which is discussed in the text.

c.If Mann makes $3 million of new investments at the beginning of the period, earns net income of $1.60 million, and pays the dividend at the end of the year, how many shares of new stock must the firm issue to meet its funding needs?(Do not round intermediate calculations.)