What is the firm's net profit margin?

	A.	2.95%
	B.	3.74%
	C.	2.04%
	D.	1.58%
	E.	6.58%

The balance sheet and income statement shown below are for Recycled Paper Inc. All figures in millions except Year- end stock price. BALANCE SHEET Cash $ 140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current assets $2,340.0 Total current liabilities $1,800.0 Long-term bonds 1,000.0 Total debt $2,800.0 Common stock (50,000 shares) 200.0 Retained earnings 1,000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4,000.0 Total liabilities & equity $4,000.0 INCOME STATEMENT Net sales Operating costs Depreciation EBIT $6,000.0 5,599.8 100.2 $ 300.0 Less: Interest 96.0 EBT Less: Taxes Net income $ 204.0 81.6 $ 122.4 OTHER DATA 60.00 $42.8 Shares outstanding Common dividends Federal plus state income tax rate Year-end stock price 40% $30.60