External Equity Financing Coastal Carolina heating and cooling Inc. has a 6 month backlog of orders for its patented solar heating system. To meet its demand, management plans to expand production capacity by 45%, with a $20 million investment in plant and machinery. The firm wants to maintain a 35% debt level in its capital structure . It also wants to maintain its past dividend policy of distributing 55% of last years net income. In 2019 the net income was $5 million. How much external equity must it seek at the beginning of 2020 to expand capacity as desired? Assume that the firm uses only debt and common equity in its capital structure.