Gardial Green Lights, a manufacturer of energy-efficient lighting solutions, has had such success with its new products that it is planning to substantially expand its manufacturing capacity with a $3,531,000.00 investment in new machinery. Gardial plans to maintain its current 13.0% debt-to- total-assets ratio for its capital structure and to maintain its dividend policy in which at the end of each year it distributes 23.0% of the year's net income. This year's net income was $2,950,000.00. How much external equity must Gardial seek now to expand as planned?

1. $537,956
2. $508,944
3. $765,140
4. $800,470
5. $381,000