Learner Lanes, a Producer of Bowling Balls, Needs $2 Assuming That These Ratios Are Consistent with the Firm's Target

Learner Lanes, a producer of bowling balls, needs $2.5 million to expand operations. You look at the firm's balance sheet and find the following totals: $\begin{array}{ll}\text { Current liabilities: } & \$ 9,000 \\\text { Longsterm debt: } & \$ 25,000 \\\text { Preferred stock: } & \$ 10,000 \\\text { Common stock: } & \$ 56,000\end{array}$ Assuming that these ratios are consistent with the firm's target capital structure, cost of capital based calculations would assume that ____ is raised through the issuance of new common stock.

A) $1,400,000
B) $1,538,462
C) $1,650,000
D) $2,500,000