Suppose that a company's equity is currently selling for $40.25 per share and that there are 1.1 million shares outstanding and 21 thousand bonds outstanding, which are selling at 107.50 percent of par. If the firm was considering an active change to their capital structure so that the firm would have a D/E of 1.6, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell? (Round your intermediate ratio to 4 decimal places.)

Answers are:

$18,564,245 in new debt

$18,564,245 in new equity

$6,269,078 in new equity

$12,295,168 in new debt