Oumairi Company has the following financial information for the years 2018 and 2019: Year Net Income 2018 $5,500,000 2019 $6,200,000 Shares outstanding 1,000,000 1,000,000 Sales $20,000,000 $22,000,000 Capital Budget $8,000,000 $8,600,000 Equity ratio 60% 50% Note: Union Company distributes its dividends based on the residual dividend model. 1. The company's equity needed for investment in 2018 is: * a. $4,800,000 b. $4,200,000 c. $1,470,000 d. 3,500,000 e. None of the above