Jaxson Smith Is a Rapidly Growing Technology Firm

Jaxson Smith is a rapidly growing technology firm. To fund its next growth phase, the firm needs to raise $1.2 million. The firm estimates that it can sell new shares of stock at a price of $55 a share. The estimate for legal, accounting, and other costs related to the stock issue are $450,000. The underwriters' spread is 6.5 %. How many shares of stock must Jaxson Smith sell to meet its financing need?

A) 31,182 shares
B) 31,501 shares
C) 32,086 shares
D) 32,609 shares
E) 33,335 shares