Question 35 Not yet answered Marked out of 1.00 P Flag question 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 assetz, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. 2015 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 Total current liabilities $2,500 11,500 16.000 $30,000 $20.000 $50,000 $9,500 5,500 _ 7.000 $22.000 Long-term bonds Total liabilities Common stock Retained eamings Total common equity Total liabilities and equity $15.000 $37,000 $ 2,000 11.000 $13.000 $50,000 2015 Income Statement (Millions of 5) Net sales Operating costs except depreciation Depreciation Eamings bef interest and taxes (EBIT) Less interest Eamings before taxes (EBT) Taxes Net income $87,500 81,813 _1.51 $ 4,156 _1375 $ 2,781 973 $ 1,808 Other data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $632.73 6.25% 35% $43.39 Refer to Exhibit 4.1. What is the firm's BEP? Select one: a. 8.31% O b. 7.90% c, 7.5096 O d. 8.73% 9.16% e