In order to raise new equity Grimm Inc. employs Speed Bank. Grimm wants to raise $28 million in equity for a new project (not including the fee paid to the investment bank). Grimm keeps a constant debt-to-value ratio equal to 40%. The required interest rate on debt is 4%. The expected return on levered equity is 8% The perpetual EBIT of the project is $5 million a year and there is no asset depreciation. The corporate tax rate is 36%. The NPV of the project is $3 million. What is the fee charged by the bank for issuing new equity (assume that there is no cost connected to debt issuance)? Show your working