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 $36 per share because of signaling effects. The underwriters' compensation will be 6% of the issue price, so Beranek will net $33.84 per share. The firm will also incur expenses in the amount of $145,000. How many shares must the firm sell to net $16 million after underwriting and flotation expenses? Do not round intermediate calculations. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest whole number.

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