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Apex Roofing Inc. has the following balance sheet (in millions of dollars): Current assets $3.0 Accounts payable $1.2 Net fixed assets 4.0 Notes payable 0.8

Apex Roofing Inc. has the following balance sheet (in millions of dollars): Current assets $3.0 Accounts payable $1.2 Net fixed assets 4.0 Notes payable 0.8 Accrued wages and taxes 0.3 Total current liabilities $2.3 Long-term debt 1.2 Common equity 1.5 Retained earnings 2.0 Total assets $7.0 Total liabilities and equity $7.0 Last year's sales were $10 million, and Apex estimates it will need to raise $2 million in new debt and equity next year. You have identified the following facts: (1) it pays out 30 percent of earnings as dividends; (2) a profit margin of 4 percent is projected; (3) fixed assets were used to full capacity; and (4) assets and spontaneous liabilities as shown on last year's balance sheet are expected to grow proportionally with sales. If the above assumptions hold, what sales growth rate is the firm anticipating? Use the AFN equation

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