Debt vs Equity Financing

A company needs $200M to fund an acquisition. Option 1: issue equity at a $2.0B pre-money equity value. Option 2: issue debt at 7% interest (ignore taxes) with no immediate principal repayment. If the company generates $30M of annual incremental EBIT from the acquisition, which option has the LOWER immediate annual financing cost in $M? Enter the annual financing cost of the cheaper option in millions (e.g., 12.3).