Kenney Corporation recently reported the following income statement for 2002 (numbers are in millions of dollars):

a. $1,140

b. $1,260

c. $1,440

b. $1,790

c. $1,810

$0.8 Current assets Net fixed assets $4.0 4.0 Accounts payable Notes payable 1.0 0.2 1.5 Accrued wages and taxes Long-term debt Common equity Retained earnings 1.5 3.0 Total assets $8.0 Total liabilities and equity $8.0 You have determined the following facts: (1) last year's sales were $10 million; (2) the company will pay out 40 percent of eamings as dividends; (3) a profit margin of 3 percent is projected; (4) fixed assets were used to full capacity, and (5) all assets as well as spontaneous liabilities as shown on the balance sheet are expected to grow proportionally with sales. Further, your boss estimates she will need to raise $2 million extemally by issuing new debt or common stock next year. If the above assumptions hold, what rate of sales growth is your boss expecting? $0.8 Current assets Net fixed assets $4.0 4.0 Accounts payable Notes payable 1.0 0.2 1.5 Accrued wages and taxes Long-term debt Common equity Retained earnings 1.5 3.0 Total assets $8.0 Total liabilities and equity $8.0 You have determined the following facts: (1) last year's sales were $10 million; (2) the company will pay out 40 percent of eamings as dividends; (3) a profit margin of 3 percent is projected; (4) fixed assets were used to full capacity, and (5) all assets as well as spontaneous liabilities as shown on the balance sheet are expected to grow proportionally with sales. Further, your boss estimates she will need to raise $2 million extemally by issuing new debt or common stock next year. If the above assumptions hold, what rate of sales growth is your boss expecting