8. (4 points) Firm CCC has no debt. Existing assets generate earnings, E=(EPS*Number of shares outstanding) of $8mil. per year forever. Discount rate=10%. Firm has n shares (4 mil.) currently selling at P=$20 per share. Now firm plans to invest I=$20mil. in new project Project will generate $3 mil. in new earnings per year forever Firm will issue N* new shares at price P* to finance project. Suppose now new shares can only be sold for $15, what is the gain by new shareholders? 8. (4 points) Firm CCC has no debt. Existing assets generate earnings, E=(EPS*Number of shares outstanding) of $8mil. per year forever. Discount rate=10%. Firm has n shares (4 mil.) currently selling at P=$20 per share. Now firm plans to invest I=$20mil. in new project Project will generate $3 mil. in new earnings per year forever Firm will issue N* new shares at price P* to finance project. Suppose now new shares can only be sold for $15, what is the gain by new shareholders