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 $)	2021
Assets
Cash and securities		$	4,500
Accounts receivable			12,500
Inventories			13,000
Total current assets		$	30,000
Net plant and equipment			20,000
Total assets		$	50,000
Liabilities and Equity
Accounts payable		$	16,640
Accruals			9,360
Notes payable			5,000
Total current liabilities		$	31,000
Long-term bonds			9,000
Total liabilities		$	40,000
Common stock			2,900
Retained earnings			7,100
Total common equity		$	10,000
Total liabilities and equity		$	50,000
Income Statement (Millions of $)	2021
Net sales		$	70,000
Operating costs except depreciation			65,100
Depreciation			1,600
Earnings before interest and taxes (EBIT)		$	3,300
Less interest			840
Earnings before taxes (EBT)		$	2,460
Taxes (25%)			615
Net income		$	1,845
Other data:
Shares outstanding (millions)			500.00
Common dividends (millions of $)		$645.75
Int. rate on notes payable & L-T bonds			6%
Federal plus state income tax rate			25%
Year-end stock price			$44.28

What is the firm's BEP? Do not round your intermediate calculations.

a. 4.92%

b. 4.71%

c. 11.00%

d. 6.60%

e. 3.69%