Your firm is considering a new investment project that costs $1,000K. There are two states of the world that will determine the values of your existing assets and new investment project. As the manager, assume your objective is to maximize the value to current shareholders. The following table provides you with financial information for your firm in each state of the world (all values are in thousands of $):

	State G	State B
Probability of State	50%	50%
Present Value of Existing Assets	8,000	4,000
Cost of New Investment	1,000	1,000
Present Value of New Investment	2,500	1,500
NPV of New Investment	1,500	500
Value of Assets with Investment	10,500	5,500

The manager announces that she will invest in the new project. The public does not know the true state of the world, but knows that the manager knows the true state of the world. Suppose first that the manager will raise the $1,000K by issuing equity. In part (a), also assume that the public does not infer the state of the world from the managers decision to issue equity. a) What percentage of the firm will these new shareholders demand in exchange for $1,000K?