Could you explain the steps for solving this financial accounting question accurately?

Last year, TechGen Innovations had $6 million in operating income (EBIT). Its depreciation expense was $1.5 million, its interest expense was $1.2 million, and its corporate tax rate was 35%. At year-end, it had $12 million in current assets, $3 million in non-interest- bearing current liabilities, and $18 million in net plant and equipment (fixed assets). The company's cost of capital is 8%. If the firm had $3.8 million in retained earnings at the beginning of the year and paid out a total dividend of $1.25 million, what was its retained earnings at the end of the year