External Equity to be Issued. Travis Company’s net income for the year was $3 million. It pays out 30 percent of its earnings in dividends. The company will acquire $5 million in new assets of which...

External Equity to be Issued. Travis Company’s net income for the year was $3 million. It pays out 30 percent of its earnings in dividends. The company will acquire $5 million in new assets of which 35 percent will be financed by debt. What is the amount of external equity that must be issued?