The balance sheet and income statement shown below are for Konki 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 5) Assets 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 $60,000 $18,630 8,370 6,000 $33,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $5,000 $42,000 $5,040 12,960 $18,000 $60,000 Income Statement (Millions of s) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest 2018 $84,000 78,120 1,680 $4,200 900 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 2018 $84,000 78,120 1,680 $4,200 900 $3,300 1,320 $1,980 Other data: Shares outstanding (millions) Common dividends (millions of 5) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $693.00 696 40% $47.52 Refer to Exhibit 4.1. What is the firm's profit margin? Do not round your intermediate calculations. a. 2.36% b. 2.48% c. 1.849 d. 1.82% e. 2.52% Hide Feedback Incorrect