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Brown & Sons recently reported sales of $400 million, accounts payable of $4 million, accruals of $6 million, and net income equal to $20 million.

Brown & Sons recently reported sales of $400 million, accounts payable of $4 million, accruals of $6 million, and net income equal to $20 million. The company has $200 million in total assets. Over the next year, the company is forecasting a 30 percent increase in sales. Since the company is at full capacity, its assets must increase in proportion to sales. If the companys sales increase, its profit margin will remain at its current level. The companys dividend payout ratio is 40 percent. Based on the AFN formula, how much additional capital must the company raise in order to support the 30 percent increase in sales?

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