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

2019

Cash and securities

$4,200

Accounts receivable

17,500

Inventories

20,300

Total current assets

$42,000

Net plant and equipment

$28,000

Total assets

$70,000

Liabilities and Equity

Accounts payable

$22,509

Accruals

14,391

Notes payable

6,000

Total current liabilities

$42,900

Long-term bonds

$11,000

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 $) 2019

Net sales

$105,000

Operating costs except depreciation

97,650

Depreciation

2,100

Earnings before interest and taxes (EBIT)

$5,250

Less interest

1,020

Earnings before taxes (EBT)

$4,230

Taxes

1,058

Net income

$2,538

Other data:

Shares outstanding (millions)

500.00

Common dividends (millions of $)

$888.30

Int rate on notes payable & L-T bonds

6%

Federal plus state income tax rate

40%

Year-end stock price

$60.91

Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations.

Group of answer choices

3.63%

3.08%

2.83%

4.17%

2.90%