The Educated Horses Corporation needs to raise $60 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The SEC filing fee and associated administrative expenses of the offering are $900,000. If the offer price is $21 per share and the company’s underwriters charge a 9 percent spread, how many shares need to be sold?
a) 2,857,143 shares
b) 3,186,814 shares
c) 2,900,000 shares
d) 3,110,882 shares
e) 3,039,717 shares