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red shoe co. has concluded that additional equity financing willbe needed to expand operations and that the needed funds will bebest obtained through a rights offering. It has correctlydetermined that as a result of the rights offering, the share pricewill fall from $49 to $47.60 ($49 is the rights on price $47.60 isthe ex rights price also known as the when issued price) thecompany is seeking 16.5 million in additional funds with a pershare subscription price equal to $34. how many shares are therecurrently before the offering? (assume that the increment to themarket value of the equity equals the gross proceeds from theoffering)
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