Howett Pockett, Inc. needs to raise $12 million in new capital funding from a seasoned equity offering. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a gross price of $13.50 per share and they will charge an underwriter’s spread of $1.00 per share. In addition, Howett Pockett must pay $500,000 in legal and other administrative expenses for the seasoned stock offering. Calculate the number of shares of stock that Howett Pockett will need to sell to raise the $12 million.
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