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The balance sheet and income statement shown below are for Koska Inc. Note that the firm has no amortization charges, it does not lease any
The balance sheet and income statement shown below are for Koska 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 years, and the notes payable will be rolled over Balance Sheet (Milions of ) 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 2018 $3,000 15,000 18,000 $36.000 $24,000 560,000 $18.630 3.370 6.000 $35.000 Long term bonds Totallaties Commons Retained coming Totalcommon equity Total abilities and equity $9.000 143.000 $5,040 12.900 110.000 160,000 Income Statement Millions of Net sales Operating costs except depreciation Depreciation 2018 164009 78.120 150 Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes $4,200 900 $3,300 1,320 $1,980 Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate 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 market-to-book ratio? Do not round your intermediate calculations. a. 1.00 b. 1.65 c. 1.35 O d. 1.32 e. 1.33 OO
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