The Rho Corporation was incorporated eight years ago by Tyee and Danette. Tyee received 2,800 shares of common stock for his $56,000 contribution, and Danette received 5,600 shares of common stock for her $112,000 contribution. Five years ago, both Tyee and Danette acquired $28,000 of Rho bonds paying 3% interest.

In the current year, Rho's common stock is valued at $504,000. SheenCo would like to acquire a 25% interest in Rho by purchasing common stock from Rho. Tyee and Danette see this as a good time to restructure Rho's capital. They would like to own bonds paying 5% interest, instead of 3%, and each would like to receive $180,000 of preferred stock (par of $100 per share) in exchange for some of their common stock.

c. If the exchange of common stock for preferred stock occurs before the acquisition by SheenCo, Tyee and Danette each will receive: shares of preferred stock valued at : in exchange for: shares of common stock.

How many shares of common stock will SheenCo purchase in order to have a 25% interest in Rho? shares