Qinglin Corp. is expected to pay an annual cash dividend of $1 per share in perpetuity, with the next dividend expected one year from now. It has 300,000 shares outstanding. Investors demand a rate of return of 4%.

1) Mr. Shu Qinglin decides to raise next years dividend payout to $510,000, while keeping companys investments and borrowings constant. After next year, the company will go back to its policy of paying out $300,000 per year.

a) The company will pay for the extra dividend payout by issuing new shares at the current market value now. What amount of new equity capital is needed?