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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

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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 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable 2015 $ 2,500 11,500 | 16,000 $30,000 $20,000 $50,000 $ 9,500 5,500 7,000 $22,000 Total current liabilities $15,0 $37,0 mg-term bonds tal liabilities ommon stock Cetained earnings Total common equity Total liabilities and equity $ 2,0 11,0 $13.00 $50,00 2015 Income Statement (Millions of S) Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes $87,500 81,813 1,531 S 4.156 1.375 $ 2,781 973 $ 1,808 Net income Other data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate 500.00 $632.73 6.25% 35% Year-end stock price $43.39 Refer to Exhibit 4.1. What is the firm's market-to-book ratio? O 1.21 O 0.87 1.42 1.67 01.02

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