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Refer to Exhibit 4.1. What is the firm's P/E ratio?  Do not round your intermediate calculations.   a. 13.2   b. 14.6   c. 13.9   d. 12.0   e. 12.6

Refer to Exhibit 4.1. What is the firm's P/E ratio?  Do not round your intermediate calculations.   a. 13.2   b. 14.6   c. 13.9   d. 12.0   e. 12.6

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. 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 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  

    2021
    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  

    $13,330
    Accruals  

    8,170
    Notes payable  

    6,000
    Total current liabilities  

    $27,500
         
    Long-term bonds  

    $9,000
    Total liabilities  

    $36,500
    Common stock  

    $3,915
    Retained earnings  

    9,585
    Total common equity  

    $13,500
    Total liabilities and equity  

    $50,000
         
    Income Statement (Millions of $)   2021
    Net sales  

    $55,000
    Operating costs except depreciation

    51,150
    Depreciation  

    1,100
    Earnings before interest and taxes (EBIT)

    $2,750
    Less interest  

    900
    Earnings before taxes (EBT)  

    $1,850
    Taxes (25%)  

    463
    Net income  

    $1,388
         
    Other data:    
    Shares outstanding (millions)  

    500.00
    Common dividends (millions of $)  

    $485.63
    Int. rate on notes payable & L-T bonds

    6%
    Federal plus state income tax rate

    25%
    Year-end stock price  

    $33.30

    ​

    ​

    ​

    ​

    ​


    Refer to Exhibit 4.1. What is the firm's P/E ratio?  Do not round your intermediate calculations.
      a.
    13.2
      b.
    14.6
      c.
    13.9
      d.
    12.0
      e.
    12.6
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