Company A needs to raise 8.5 million for a new investment project. If the firm issues one year debt, it may have to pay an interest rate of 12%, although the managers believe that 7.5% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 9%. What is the cost to current share holders of financing the project out of retained earnings, debt and Equity?

I need help finding out how to do the equity part.