Eagle Sports Supply had net income of $6 million on sales of $50 million last year. The firm paid a dividend of $1.2 million. Total assets were $100 million, of which $60 million was financed by debt. ESC has no spare capacity. The firms financial planners forecast the total sales next year will increase by 10% from this years level. If ESC chooses not to issue new shares of stocks and maintains a 3/2 debt to equity ratio, how much new debt will be issued.

A. $4 million

B. $6 million

C. $8.8 million

D. $10 million