Persian Rugs Needs $600 Million to Support Growth Next Year

Persian Rugs needs $600 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $125 per share, how many shares of common stock must be issued so that it has $600 million after flotation costs to use for its planned growth?

A) 5,000,000
B) 4,800,000
C) 4,992,000
D) 4,512,000
E) 4,000,000