Atlanta Corporation has no debt. Existing assets generate earnings of $8 million per year forever. Discount rate = 10%. Firm has X shares (4 mil) currently selling at P = $20 per share. Atlanta Corp. plans to invest I = $20 million in a new project.

Project will generate $3 million in new earnings per year, forever. Atlanta Corp. will issue X* new shares at price P* to finance project.

If new shares can only be sold for $15, what is the gain by new shareholders?