Problem:
Mountain Teas wants to raise $11.6 million to open a new production center. The company estimates the issue costs including the legal and accounting fees will be $440,000. The underwriters have set the stock price at $17.50 a share and the underwriting spread at 9 percent.
Required:
How many shares of stock does Mountain Teas have to sell to meet its cash need? Please show all work.
A. 728,414 shares
B. 756,044 shares
C. 769,315 shares
D. 772,200 shares
E. 781,909 shares
Note: Please show basic calculation