Young Corporation stock currently sells for $$30$ per share. There are one million shares currently outstanding. The company

announces plans to raise $$5$ million by offering shares to the public at a price of $$30$ per share.

a$.$ If the underwriting spread is $7\%,$ how many shares will the company need to issue in order to be left with net proceeds of $$5$

million? $($Round your answer to the nearest whole.$)$

Number of shares

b$.$ If other administrative costs are $$65,000,$ what is the dollar value of the total direct costs of the issue? $($Round your answer to the

nearest dollar.$)$

Dollar value of total direct costs $

c$.$ If the share price falls by $3\%$ at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the

announcement effect? $($Round your answer to the nearest dollar.$)$

Dollar value of total direct costs $