Suppose that Lil John Industries' equity is currently selling for $39 per share and that 3.2 million shares areoutstanding.The firm also has 62,000 bonds outstanding, which are selling at 103 percent of par.Assume Lil John was considering an active change to its capital structure so that the firm would have a (D/E) of 1.4.

Which type of security (stocks or bonds) would it need to sell to accomplish this?

sell bonds and buy back stock Correct

sell stocks and buy back bonds

How much would the firm have to sell?(Enter your answer in dollars not in millions. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Selling Amount?

Having trouble I got the answer 1.076 million bonds which was incorrect