17.12. Compton Industries currently has 2 million shares outstanding at $3 per share. Because the company is having financial difficulties, it also has $50 million in face value of long-term outstanding debt that is selling at only 60 percent of its face value. As Compton’s CEO, you estimate that you will need a cash inflow of $10 million within six months to meet your payroll. Since covenants in the existing debt preclude further debt financing, you are forced to consider an equity offering. Is such an offering possible, assuming the equity issue would result in a 20 percent increase in the value of the debt? Explain why.