(Percent of sales forecasting) Lafayette Oil Company has current sales of $50 million. Lafayette estiamtes that an additional dollar of sales requires an investment of $1.25 and generates short-fall financing of $0.15. Lafayette has an 8% net profit margin and expects to pay out dividends equal to 25% of its net profit. How much additional financing is needed if Lafayette plans to expand sales by 10% next year?

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