4. The Davidson Corporation's balance sheet and income statement are given here: Davidson Corporation: Balance Sheet as of December 31, 2005 (Millions of Dollars) Assets Liabilitios and Equity s 120 Cash and equivalents Accounts receivable inventories s 15 515 Notes payable $1,410 2,590 Long-torm bonds S 620 1,520 $2,140 Total current liabilities Total dobt (100 million sharos) Common equity Total current assets Net plant and equipment -Common stock Rotained earnings 1,600 Total assets $4,000 Total liabilities and equity $4,000 Davidson Corporation: Income Statement for Year Ending December 31, 2005 (Millions of Dollars) Sales Operating costs excluding doprociation and amortization EBITDA Doprociation and amortization EBIT $6,250 5,230 $1,020 EBT Taxes (40%) Not income Common dividends paicd Earnings per share S 800 180 $ 620 248 372 . 1 $ 3.72