Exhibit 4.1 The balance sheet and income statement shown helow 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 2018 $3,000 15,000 18,000 $36,000 $24,000 $60,000 Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current llabilities $18,630 8,370 6,000 $33,000 Long-term bonds Total liabilities Common stock Retained eamings Total common equity Total liabilities and equity $9,000 $42,000 $5,040 12,960 $18,000 $60,000 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Eanings before interest and taxes (EBIT) Less interest Eamings before taxes (EBT) 2018 $84,000 78,120 1,680 $4,200 1,320 $1,980 Net income Other data Shares outstanding (millions) Common dividends (millions of $) 500.00 $693.00 $42,000 $5,040 12,960 $18,000 $60,000 Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2018 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income $84,000 78,120 1,680 $4,200 900 $3,300 1,320 $1,980 Other data Shares outstanding (millions) Common dividends (millions of $) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $693.00 6% 40% $47.52 Refer to Exhibit 4.1. What is the firm' s operating margin? Do not round your intermediate calculations. a. 4.10% b. 5.00% C, 4.55% d. 5.85% e. 4.80%