A company has a target capital structure of 70% debt and 30% equity. If the company raises equity of less than $10 million, then its cost of equity is 12%. If the new equity issued is above $10 million, its cost of equity is 14%. The first break point in the cost of capital raised due to the change in the cost of equity is closest to:

Question 15 options:

	$33.33 million.
	$14.29 million.
	$10.00 million.