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A firm plans to expand its manufacturing with a $15 million investment in fixed assets. The firm plans to maintain a 30% debt-to-total assets ratio

A firm plans to expand its manufacturing with a $15 million investment in fixed assets. The firm plans to maintain a 30% debt-to-total assets ratio and to maintain its dividend policy of distributing 55% of net income. The forecast net income is $8 MM. How much external equity must the firm issue in order to fund the expansion and meet the targeted ratios?

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