Underwriting and flotation expenses

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Underwriting and Flotation Expenses

The Beranek Company, whose stock price is now $40, needs to raise $13 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 4% of the issue price, so Beranek will net $34.56 per share. The firm will also incur expenses in the amount of $175,000.

How many shares must the firm sell to net $13 million after underwriting and flotation expenses? Round your answer to the nearest whole number.

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