Underwriting and Flotation Expenses

The Beranek Company, whose stock price is now $40, needs to raise $16 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $38 per share because of signaling effects. The underwriters' compensation will be 6% of the issue price, so Beranek will net $35.72 per share. The firm will also incur expenses in the amount of $180,000.

How many shares must the firm sell to net $16 million after underwriting and flotation expenses? Round your answer to the nearest whole number.

Answer: ______________shares