Shocks and Struts, Inc., needs to raise $40 million to finance its plan for nationwide expansion. In discussions with its investment bank, they learn that the bankers recommend an offer price (or gross price) of $125 per share and they will charge an underwriter's spread of $12.50 per share. Calculate the net proceeds to Shocks and Struts from the sale of stock. How many shares of stock will Shocks and Struts need to sell in order to receive the $40 million they need?

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The Answer of Shocks and Struts, Inc., needs to raise $40 million to finance its plan for nationwide expansion. In discussions with its investment bank, they learn that the bankers recommend an offer price (or gross price) of $125 per share and they will charge an underwriter's spread of $12.50 per share. Calculate the net proceeds to Shocks and Struts from the sale of stock. How many shares of stock will Shocks and Struts need to sell in order to receive the $40 million they need?