Please answer question 3

Question 3 Through IPO, an investment bank is helping a manufacturing rm to issue new equity to nance the rm's $120 million investment project that has a present value of $165 million. The rm has a debt of $45.1 million in place. The rm's average annual earnings has been $12.8 million, and EBITDA $17 million. PIE and VIEBITDA ratios of similar rms without debt are 14 and 11.3, respectively. a) If the issuing rm wants to increase its old shareholders' wealth by a minimum of 20% with the issuance and investment, what is the maximum issuance costs (1C) the investment bank can charge? b) Given the IC calculated above, what is the fraction of ownership does the rm need to sell to the new investors? c) If the target share price after the issuance is $22.60, how many shares need to be sold to the new investors