The 2007 balance sheet for American Pulp and Paper is shown below (in millions of dollars):
Cash $3.0
Accounts Receivable 3.0
Inventory 5.0
Current Assets $11.0
Fixed Assets $3.0
Total Assets $14.0
Accounts Payable $2.0
Notes Payable 1.5
Current Liabilities $3.5
Long term Debt $3.0
Common Equity 7.5
Total Liabilities
and Equity $14.0
In 2007, sales were $60 million. In 2008, management believes that sales will increase by 20 percent to a total of $72 million. The profit margin is expected to be 5 percent, and the dividend payout ratio is targeted at 40 percent. No excess capacity exists. What is the additional financing requirement (in million) for 2008 using the formula method?