Pen Paper's sales are $18,000,000, EBIT is $1.3M, cost of goods sold are $15M, and net income is $540,000. Account receivables is $1M, inventory is $1,200,000, and account payables $1,400,000. Pen Papers cost of capital is 12.5% with a marginal tax rate of 30%. Finally, the debt to equity ratio is 140%.

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