Tundra Engineering, whose stock price is now $32, needs to raise $40 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $31 per share because of signalling effects. The underwriters' compensation will be 6% of the issue price. The firm will also incur expenses in the amount of $110,000.
How many shares must the firm sell to net $40 million after underwriting and flotation expenses?