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The Yellow Coro, whose stock price is now $25, needs to raise $20 million in common stock, Underwnitors have informed the firm's management that they must price the new issue to the public at $22 per share because of signaling effects. The underwriters compensation will he 5% of the Issue price, so the company will net $20.90 per share. The firm will also incur expenses in the amount of $150,000. How many shares must the firm sell to net $20 million after underwriting and floatation expenses?
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