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Following information applies to the following questions. The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no

Following information applies to the following questions. 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

2010

Cash and securities

$1,290

Accounts receivable

9,890

Inventories

13,760

Total current assets

$24,940

Net plant and equipment

$18,060

Total assets

$43,000

Liabilities and Equity

Accounts payable

$8,170

Notes payable

6,020

Accruals

4,730

Total current liabilities

$18,920

Long-term bonds

$8,815

Total debt

$27,735

Common stock

$5,805

Retained earnings

9,460

Total common equity

$15,265

Total liabilities and equity

$43,000

Income Statement (Millions of $)

2010

Net sales

$51,600

Operating costs except depreciation

48,246

Depreciation

903

Earnings bef interest and taxes (EBIT)

$2,451

Less interest

927

Earnings before taxes (EBT)

$1,524

Taxes

533

Net income

$990

Other data:

Shares outstanding (millions)

500.00

Common dividends (millions of $)

$346.67

Int rate on notes payable & L-T bonds

6.25%

Federal plus state income tax rate

35%

Year-end stock price

$23.77

a) Calculate Firms PIE Ratio

b) Firms operating margin

c)Firms profit margin.

d)Firms EPS

E) Firms dividend per share

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