Fi515 Week 2 Homework

Week 2 Problems (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 eld. The gilds just daily gross sales ar $20,000. What is the level of its accounts receivable? Assume there atomic number 18 365 days in a year. DSO = days sales prominent = receivables / average sales per day = Receivable / (annual sales / 365) 20 = receivables / 20,000 Receivables = 20 * 20,000 Receivables = 400,000 (3-2) Debt proportionality Vigo Vacations has an paleness multiplier of 2.5. The companions assets are financed with round combination of semipermanent debt and parkland virtue. What is the companys debt balance? equity Multiplier = 2.5 wherefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 the formula is: Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60% (3-3) marketplace/Book Ratio Winston Washers stock cost is $75 per packet. Winston has $10 one kilobyte thousand in total assets. Its balance sheet shows $1 one thousand thousand in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 one million million shares of common stock outstanding. What is Winstons market/book ratio?

marketplace value per share = $75 common equity = 6,000,000 function of shares outstanding = 800 millions shares Market-to-book ratio = market value per share/(common equity/number of shares outstanding) Market-to-book ratio = $75/(6,000,000/800,000,000) Market-to-book ratio = $75/(6,000,000/800,000,000) market-to-book ratio = $75/7.5 market-to-book ratio = 10 Winston Washers market-to-book ratio is 10. (3-4) expenditure/Earnings Ratio A company has a n EPS of $1.50, a cash be given per share o! f $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? (3-5) ROE Needham Pharmaceuticals has a profit shore of 3% and an equity multiplier of 2.0. Its sales are $ one degree Celsius million and it has total assets of $50 million. What is its ROE? Intermediate Problems 6-10 (3-6) Du Pont synopsis Donaldson & watchword has an ROA of 10%, a 2% profit margin, and a upshot on...If you want to get a full essay, bless it on our website: OrderEssay.net

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