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 $ 2,500

Accounts receivable 11,500

Inventories 16,000

Total current assets $30,000

Net plant and equipment $20,000

Total assets $50,000

Liabilities and Equity Accounts payable $ 9,500

Notes payable 7,000

Accruals 5,500

Total current liabilities $22,000

Long-term bonds $15,000

Total debt $37,000

Common stock $ 2,000

Retained earnings 11,000

Total common equity $13,000

Total liabilities and equity $50,000

Income Statement (Millions of $) 2010

Net sales $87,500

Operating costs except depreciation 81,813

Depreciation 1,531

Earnings bef interest and taxes (EBIT) $ 4,156

Less interest 1,375

Earnings before taxes (EBT) $ 2,781

Taxes 973 Net income $ 1,808

Other data: Shares outstanding (millions) 500.00

Common dividends $632.73

Int rate on notes payable & L-T bonds 6.25%

Federal plus state income tax rate 35%

Year-end stock price $43.39

1.What is the firm's ROE?

2.What is the firm's profit margin?

3. What is the firm's operating margin?

4. What is the firm's P/E ratio?