Question: Wear ever is expanding and needs $12.6 million to help fund this growth. the firm estimates it can sell new shares of stock for $32.50 a share. it also estimates it will cost an additional $340,000 for filing and legal fees related to the stock issue. the underwriters have agreed to a 7.5 percent spread. How many shares of stock must wear ever sell if it is going to have $12.6 million available for its expansion needs?
What is the formula for processing this question and how is it used?