Company A currently have debt to the value of R$3$ million. The equity value is R$3750000.$ They want to invest in a new capital project to the value of R$2500000.$ The targeted capital structure they are working towards is $50\%$ debt, $50\%$ equity.

How will the amount of R$2500000$ be financed for the company to meet the targeted capital structure?

R$87500$ debt finance and R$1625000$ equity finance

Equity to the value of R$875000$ and debt to the value of R$1625000$

Equity finance to the value of R$1625000$ and debt finance to the value of R$875000.$

R$11000000$ debt finance and R$1400000$ equity finance