Please help me answer the following question. I got 22,000 which was not correct. Thank you!
-m… m..- w u…“ u… “my… -st-…..v….., ti… mum…“ um…- ..l . ”no-.. EXTERNAL EQUITY FI NANCING Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 25% with a $10mHlIon investment in plant and machinery. The ﬁrm wants to maintain a 60% debt level in its capital structure. It also wants to maintain its past diVIdend policy of distributing 60% of last year’s netincome. In 2016, net inoome was $5 million. How much external equity must Coastal Carolina seek at the beginning of 2017 to expand capacity as desired? Assume that the ﬁrm uses only debt andcommon equity in its capital structure. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. $