Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	9,600
Cost of goods sold		7,665
Depreciation		400
Earnings before interest and taxes	$	1,535
Interest paid		55
Taxable Income	$	1,480
Taxes		520
Net income	$	960
Dividends	$	240

Major Manuscripts, Inc. 2012 Balance Sheet
	2012				2012
Cash	$	2,350		Accounts payable	$	2,600
Accounts rec.		1,060		Long-term debt		310
Inventory		4,500		Common stock	$	3,100
Total	$	7,910		Retained earnings		6,030
Net fixed assets		4,130
Total assets	$	12,040		Total liabilities & equity	$	12,040

If Major Manuscripts, Inc., decides to maintain a constant debt-equity ratio, what rate of growth can it maintain assuming that no additional external equity financing is available?

A)6.36 percent

B)8.56 percent C)13.56 percent D)13.2 percent E)7.31 percent