Kenney Corporation recently reported sales of $100 million and net income of $5 million. The company paid dividends of $2 million. Kenney Corporation has $50 million in spontaneous assets and $20 million in fixed assets. Over the next year, the company is forecasting a 20% increase in sales. Since the company is not operating at full capacity, its fixed assets are not expected to increase. The company estimates that if sales increase 20%, spontaneous liabilities will increase by $2 million. If the company's sales increase, its dividend payout ratio and net profit margin will remain at their current level. How much additional capital must the company raise in order to support the 20% increase in sales? (Note: The problem says spontaneous liabilities will increase by $2 million, not spontaneous liabilities are $2 million. Also, dividend payout ratio and net profit margin need to be calculated before computing EFR.)

answer: 4.4 million. show how to get to the answer