No Bicycle For Old Men Inc appeals to middle-aged men in their desire to stay active and wear tight leggings on Sundays. The company has no debt and its 16.5 million shares outstanding are trading for $18.62. The cost of equity is 12.00% and there are no taxes in this world. What is the equilibrium EBIT that justifies the current share price? $ 270.36 million Your last answer was interpreted as follows: 270.36 The firm wants to permanently elevate its EBIT to $47.8 million per year by investing a lump sum in a new product line that promises an recurring annual retum of 18.20% (Ignore any effects from depreciation or ongoing capital expenditures) What amount of capital needs to be invested to achieve this? 1 million Your last answer was interpreted as follows: 1 An SEO will be conducted to raise the necessary funds. Underwriting fees are 8.0% of the gross proceeds and additional administrative fees amount to $1.5 million. The SEO offer price is $17.30 per share How many shares (in million) will the firm have to place during the SEO? 1 million shares Your last answer was interpreted as follows: 1 What is the post-SEO share price if the investment goes according to plan? $ Your last answer was interpreted as follows: 1