Fi515 Homework 2

bother 3-1: Greene Sisters has a DSO of 20 twenty-four hour periods. The guilds enough daily sales are $20,000. What is the level of its accounts receivable? drape there are 365 days in a year. The eld Sales Outstanding: due / Average sales per day DSO= 20 days, Average daily sales = $20,000 Receivable 20 days= 20,000Receivable = 20 x 20,000 = $400,000 Problem 3-2: Vigo Vacations has an truth multiplier factor factor of 2.5. The troupes assets are financed with some combination of semipermanent debt and harsh virtue. What is the companys debt balance? Debt Ratio: forage liabilities / Total assets Problem 3-3: Winston Washerss stock price is $75 per per centum. Winston has $10 one thousand million in correspond as- sets. Its balance planer shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in commonalty equity. It has 800 million components of common stock outstanding. What is W instons market/ phonograph recording symmetry? Common equity keep nurse per fortune = shares outstanding = 6 billion 800 million = $7.5 merchandise / curb Ratio: Market price per share Book value per share = 75 = 10 7.5 Problem 3-4: A company has an EPS of $1.50, a immediate payment arise per share of $3.00, and a price/cash flow balance of 8.0. What is its P/E ratio? EPS= $1.

5 money flow per share = $3 set per share Price/cash flow ratio = cash flow per share Pr ice per share ! 8.0 = $3 Price per share = $3 x 8.0 = $24 Price / earnings ratio: Price per share Earnings per share P/ E Ratio= 24/ 1.5 = 16 Problem 3-5: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $ carbon million and it has native assets of $50 million. What is its ROE? Total assets turnover: sales / total assets = 100 / 50 = 2 Return on common equity = (profit margin) x (total assets...If you want to get a exuberant essay, hostel it on our website: OrderCustomPaper.com

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