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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
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 2019 Cash and securities $4,200 Accounts receivable 17,500 20,300 Inventories $42,000 Total current assets Net plant and equipment Total assets Liabilities and Equity $28,000 $70,000 Accounts payable Accruals Notes payable Total current liabilities $27,531 12,369 5,000 $44,900 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $9,000 $53,900 $3,864 12,236 $16,100 $70,000 Income Statement (Millions of $) 2019 Net sales $112,000 104,160 Operating costs except depreciation 2,240 Depreciation Earnings before interest and taxes (EBIT) $5,600 840 Less interest $4,760 Earnings before taxes (EBT) Taxes 1,190 $3,570 Net income 500.00 $1249.50 Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 6% 25% $68.54 Refer to Exhibit 4.1. What is the firm's dividends per share? Do not round your intermediate calculations. O a $2.50 O b. $2.26 O c. $1.50 O d. $1.52 O e. $2.30
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