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Business, 22.05.2020 22:00 rvkanneh1713

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

Balance Sheet (Millions of $)

Assets 2016
Cash and securities $2,145
Accounts receivable 8,970
Inventories 12,480
Total current assets $23,595
Net plant and equipment $15,405
Total assets $39,000

Liabilities and Equity:
Accounts payable $7,410
Accruals 4,290
Notes payable 5,460
Total current liabilities $17,160
Long-term bonds $7,800
Total liabilities $24,960
Common stock $5,460
Retained earnings 8,580
Total common equity $14,040
Total liabilities and equity $39,000

Income Statement (Millions of $) 2016

Net sales $58,500
Operating costs except depreciation 54,698
Depreciation 1,024
Earnings before interest and taxes (EBIT) $2,779
Less interest 829
Earnings before taxes (EBT) $1,950
Taxes 683 Net income $1,268

Other data:
Shares outstanding (millions) 500.00
Common dividends (millions of $) $443.63
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $23.7

Required:

a. What is the firm's BEP?
b. What is the firm's profit margin?
c. What is the firm's operating margin?
d. What is the firm's dividends per share?
e. What is the firm's EPS?
f. What is the firm's P/E ratio?
g. What is the firm's book value per share?
h. What is the firm's market-to-book ratio?
i. What is the firm's equity multiplier?

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Answers: 3

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