Problem s Marks) Obytem has 1.000.000 common shares outstanding and has carings 300 x 25%. The company is considering making a 4 million che EBIT by 20% its plans to issue shares at their current market Athing he remains the same, what is the expected share price? Show your work mark) 9 b. Now assume that Constor Ltd. would have to spll new stock at $18.50. Also assume that the underwriting spread is 5% and other direct financing expenses are $200,000. Based on this new information, what would be the expected share price? (2 marks) Bely explain the reasoning why the company's stock price might fall slightly when it announces the new equity offering and the possible rationale behind this and why ? (2 marks) Problem s Marks) Obytem has 1.000.000 common shares outstanding and has carings 300 x 25%. The company is considering making a 4 million che EBIT by 20% its plans to issue shares at their current market Athing he remains the same, what is the expected share price? Show your work mark) 9 b. Now assume that Constor Ltd. would have to spll new stock at $18.50. Also assume that the underwriting spread is 5% and other direct financing expenses are $200,000. Based on this new information, what would be the expected share price? (2 marks) Bely explain the reasoning why the company's stock price might fall slightly when it announces the new equity offering and the possible rationale behind this and why ? (2 marks)