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		$	7,000
Accounts receivable			17,500
Inventories			17,500
Total current assets		$	42,000
Net plant and equipment			28,000
Total assets		$	70,000
Liabilities and Equity
Accounts payable		$	22,336
Accruals			12,564
Notes payable			7,000
Total current liabilities		$	41,900
Long-term bonds			12,000
Total liabilities		$	53,900
Common stock			3,542
Retained earnings			12,558
Total common equity		$	16,100
Total liabilities and equity		$	70,000
Income Statement (Millions of $)	2021
Net sales		$	112,000
Operating costs except depreciation			104,160
Depreciation			2,240
Earnings before interest and taxes (EBIT)		$	5,600
Less interest			1,140
Earnings before taxes (EBT)		$	4,460
Taxes (25%)			1,115
Net income		$	3,345
Other data:
Shares outstanding (millions)			500.00
Common dividends (millions of $)		$1,170.75
Int. rate on notes payable & L-T bonds			6%
Federal plus state income tax rate			25%
Year-end stock price			$80.28

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

a. 4.78%

b. 8.00%

c. 6.37%

d. 5.00%

e. 13.33%