Young Corporation stock currently sells for $$20$ per share. There are $1$ million shares currently outstanding. The company announces plans to raise $$4$ million by offering shares to the public at a price of $$20$ per share.

$6$

points

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a$.$ If the underwriting spread is $8\%,$ how many shares will the company need to issue in order to be left with net proceeds $($before other administrative costs$)$ of $$4$ million?

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

Number of shares

b$.$ If the under writing spread is $8\%$ and the other administrative costs are $$45,000,$ what is the dollar value of the total direct costs of the issue?

Note: Enter your answer in dollars not in millions. Do not round intermediate calculations. ficiund your answer to the nearest whole dollar amount.

Total direct costs

c$.$ If the share price falls by $4\%$ at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect?

Note: Enter your answer in dollars not in millions.

Cost of the announcement effect