Flagler, Inc. needs to raise $30 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company's underwriters charge a 10 percent spread. How many shares need to be sold?

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Required sales proceeds: $30m = x (1 - 0.10); x = $33,333,333Number of shares needed = $33,333,333/$30 = 1,111,111