Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that...

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Exhibit 4.1 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 Cash and securities Accounts receivable Inventories 2016 $2,145 8,970 12,480 $23,595 Total current assets Net plant and equipment $15,405 $39,000 Total assets Liabilities and Equity Accounts payable $7,410 4,290 Accruals 5,460 Notes payable $17,160 Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity $7,800 $24,960 $5,460 8,580 $14,040 Total liabilities and equity $39,000 Income Statement (Millions of $) 2016 $58,500 Net sales Operating costs except depreciation 54,698 Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 1,024 $2,779 829 $1,950 683 $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 $30.42 Refer to Exhibit 4.1. What is the firm's equity multiplier? Do not round your intermediate calculations. 2.78 2.08 2.64 3.03 3.47 Exhibit 4.1 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 Cash and securities Accounts receivable Inventories 2016 $2,145 8,970 12,480 $23,595 Total current assets Net plant and equipment $15,405 $39,000 Total assets Liabilities and Equity Accounts payable $7,410 4,290 Accruals 5,460 Notes payable $17,160 Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity $7,800 $24,960 $5,460 8,580 $14,040 Total liabilities and equity $39,000 Income Statement (Millions of $) 2016 $58,500 Net sales Operating costs except depreciation 54,698 Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 1,024 $2,779 829 $1,950 683 $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 $30.42 Refer to Exhibit 4.1. What is the firm's equity multiplier? Do not round your intermediate calculations. 2.78 2.08 2.64 3.03 3.47