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 22.3 million shares outstanding are trading for $19.91. The cost of equity is 10.00% and there are no taxes in this world. What is the equilibrium EBIT that justifies the current share price? $ 44.399 million Your last answer was interpreted as follows: 44.399 The firm wants to permanently elevate its EBIT to $56.2 million per year by investing a lump sum in a new product line that promises an recurring annual return of 17.90%. (Ignore any effects from depreciation or ongoing capital expenditures) What amount of capital needs to be invested to achieve this? $ million 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 $1.3 million. The SEO offer price is $18.78 per share. How many shares in million) will the firm have to place during the SEO? million shares What is the post-SEO share price if the investment goes according to plan? $ Was this expansion in production beneficial from the perspective of the existing shareholders? (No answer given) 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 22.3 million shares outstanding are trading for $19.91. The cost of equity is 10.00% and there are no taxes in this world. What is the equilibrium EBIT that justifies the current share price? $ 44.399 million Your last answer was interpreted as follows: 44.399 The firm wants to permanently elevate its EBIT to $56.2 million per year by investing a lump sum in a new product line that promises an recurring annual return of 17.90%. (Ignore any effects from depreciation or ongoing capital expenditures) What amount of capital needs to be invested to achieve this? $ million 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 $1.3 million. The SEO offer price is $18.78 per share. How many shares in million) will the firm have to place during the SEO? million shares What is the post-SEO share price if the investment goes according to plan? $ Was this expansion in production beneficial from the perspective of the existing shareholders? (No answer given)