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#5: Foam Inc. recently reported Sales of $50 million, Net Income of $4 million and Total Asset Turnover ratio of 1.25. Over the next year,

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#5: Foam Inc. recently reported Sales of $50 million, Net Income of $4 million and Total Asset Turnover ratio of 1.25. Over the next year, the company is forecasting a 20 percent increase in Sales. The company is operating at full capacity. The company also estimates that if Sales increase by 20 percent, spontaneous Liabilities will increase by $1.5 million. If the company's sales increase, its Profit Margin will remain at its current level. The company's dividend payout ratio is 40 percent. Based on the EFN formula, how much additional capital must the company raise in order to support the 20 percent increase in sales

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