Rights $[$LO$4]$ 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 $$51$ to $$49\mathrm{.}30($ $$51$ is the rights$-$on price; $$49\mathrm{.}30$ is the

ex$-$rights price, also known as the when$-$issued price$).$ The company is seeking $$17$

million in additional funds with a per$-$share subscription price equal to $$35.$ 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.$)$