1.Berea Resources is planning a$75 million capital expenditure program for the c

1.Berea Resources is planning a$75 million capital expenditure program for the coming year. Nextyear Berea expects to report to the IRS earnings of $40 millionafter interest and taxes. The company presently has 20 millionshares of common stock issued and out-standing. Dividend paymentsare expected to increase from the present level of $10 million to$12 million. The company expects its current asset needs toincrease from a current level of $25 million to $30 million.Current liabilities excluding short-term bank borrowing areexpected to increase from $15 million to $17 million. Interestpayments are $5 million next year and long-term debt retirementobligation are $8 million next year. Depreciation next year isexpected to be $15 million on the companys financial statementsbut the company will report depreciation of $18 million for taxpurposes.How much external financing is required by Berea for the comingyear?