A firm has no debt. Existing assets generate earnings (E) of $32 million per year forever. Discount rate is 16%. The firm has 6.25 million shares (n) outstanding. Now the firm plans to invest I=$25 million in a new project. Project will generate $10 million in new earnings forever per year. The firm will issue n new shares at new price P* to finance the project. What is the new price P* that the new shares be issued if the new shares are priced efficiently?

	a.	P*=$38
	b.	P*=$32
	c.	P*=$33.6
	d.	P*=$36
	e.	P*=$42