Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price. BALANCE SHEET Cash S 140.0 Accounts payable S 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 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 $6.000.0 Operating costs 5,599.8 Depreciation 1002 EBIT S 300.0 Less: Interest 96.0 EBT S 204.0 Less: Taxes 81.6 Net income S 122.4 OTHER DATA Shares outstanding Common dividends Federal plus state income tax rate Year-end stock price 60.00 $42.8 40% $30.60 Use Scenario 1 to answer the question. What is the firm's net profit margin? 6.5896 1.58% 3.7496 2.04% 2.95%