NU-Tech wants to raise $11.6 million to purchase equipment by issuing new securities. Management estimates the issue will cost the firm $785,000 for accounting, legal, and other costs. The underwriting spread is 7.5 percent and the issue price is $23 per share. How many shares of stock must be sold if the firm is to have sufficient funds remaining after costs to purchase all of the desired equipment?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.