Incredible Inc. is raising $2,000,000 in capital for its next project. The firm maintains D/E ratio of 0.7 and it wishes to stay at that number after the capital raising occurs. An investment bank hired to raise capital charges 4% for each amount of debt and 8% for each amount of equity raised. How much equity must Dora Inc. raise to maintain its D/E ratio and raise $2,000,000 after the investment banking fees (a.k.a. floatation costs)?

a. $1,392,904

b. $1,533,742

c. $1,256,281

d. $1,992,243

e. $1,364,445

PLEASE SHOW FORMULA IN EXCEL