5-A company is planning to invest $12 million in new project. The company plans to maintain 40% debt ratio for its capital structure and to maintain its dividend policy in which at the end of each year it distributes 50% of the years net income. This years net income was $6 million. How much external equity must this company raise?

a) $2.8 million

b) $3.6 million

c) $4.2 million

d) $5.4 million

e) $6.2 million

NEED to see the work and formulas PLZ. Will Rate! :)