Exhibit 4.1 The balance sheet and income statement shown below are for Kos Inc. Note that the firm bas no amortization charges, it does not lease any assets, none of its debt must be retired during the st 5 years, and the notes payable will be rolled over 2016 Balance Sheet (Millions of 5) Assets Cash and securities Accounts recevable Investones 52,145 8970 12,480 Total current assets $23,595 Net plant and equipment $15.05 539,000 Total assets Liabilities and Equity Accounts payable $7,410 Accruals 4.290 3,460 Notes payable Total current liabilities S17160 57.800 Long-term bonds Total liabilities $24.960 Common stock $5,460 Retained earnings 8,580 Total common equity 514040 Total liabilities and equity $39,000 Income Statement (Millions of 5) Net sales 2016 $53,500 Operating costs except depreciation $4,698 tanea earnings Total common equity $14,040 Total liabilities and equity $39,000 Income Statement (Allions of 5) Net sales 2016 $58,500 Operating costs except depreciation 54,693 Depreciation Earnings before interest and taxes (EBIT) 20 Less interest Earnings before taxes (EBT) 51,950 653 Nos Net income $1,268 500.00 5443.63 Other data Shares outstanding (millions) Common dividends (millions of 5) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 6.25% 35% $30:42 Refer to Exhibit 4. 1. What is the firm's equity multiplier? Do not round your intermediate calculations 278 208 2.64 3.03 3.47