Red Shoe Co. has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a rights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $90 to $86 ($90 is the rights-on price; $86 is the ex-rights price,also known as the when-issued price). The company is seeking $15 million in additional funds with a per-share subscription price equal to $45. How many shares are there currently, before the offering? (Assume that the increment to the market value of the equity equals the gross proceeds from the offering.)

• 3,553,333

• 258,256

• 3,416,667

• 3,280,000

• 3,587,500