Chipper's Golf Resort Has Learned That Rory McIlroy Is Interested

Chipper's Golf Resort has learned that Rory McIlroy is interested in putting his name on golf course designs; however, in order for any golf course to be acceptable to him, it will cost a minimum of $20 million to build. Chipper's owners want an international presence, and they believe that "just the way golf club companies became publicly traded corporations, it may be time for golf courses to do the same." The plan is to begin to purchase real estate for four new golf resorts. Proceeding with their venture, the owners have calculated that they will need approximately $100 million. But putting together an IPO is another matter. After meeting with their investment banker, they believe that investors will be willing to pay $16/share for the IPO. As the ___________ for this issue, the investment bank requires 3% of the revenues generated by the sale. Chipper's will need to issue _______ shares in order to have the $100 million they need to proceed with their plan.

A) underwriter; more than 6.250 million shares
B) underwriter; 6.250 million shares
C) regulator; more than 10 million shares
D) regulator; more than 60 thousand shares