Fi 515

Saheed Olagunju Homework Wk2 FI515 Chapter 3-1 Days Sales Outstanding Greene Sisters has a DSO of 20 days. The caller-outs average daily realise gross revenue ar $20,000. What is the aim of its accounts receivable? Assume in that location are 365 days in a year. do AR= 20x20000=400,000 3-2 Debt Ratio Vigo Vacations has an law multiplier of 2.5. The fraternitys additions are financed with some combination of long debt and joint candor. What is the ships companys debt dimension? come Equity multiplier Asset / paleness = 2.5/1 A=L+E 2.5=1.5=+1 Debt/ plus = 1.5/2.5 = .6 3-3 commercialize/ guard Ratio Winston Washerss stock equipment injured party is $75 per make out. Winston has $10 trillion in primitive as- sets. Its balance sheet shows $1 one thousand gazillion in current liabilities, $3 billion in semipermanent debt, and $6 billion in habitual equity. It has 800 million partake ins of common stock outstanding. What is Winstons market/ mass ratio? Answer grocery store value per handle =$75 super acid equity= 6,000,000 Number of share outstanding =800,000,000 Market to book ration = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.75= 100 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a worth/cash flow ratio of 8.0. What is its P/E ratio?

Answer Price /cash flow ratio= outlay per share/ cash flow per share Price per share = $8 x $3 = $24 P.E = Price per share / EPS P.E = $24 / 1.5 = 16 3-5 hard roe Needham Pharmaceuticals has a good margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is r! oe Answer ROE= bring on margin x asset interference x equity multiplier =3% asset derangement = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2 x2= 12% 3-6 Du Pont outline Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the companys total assets turnover? What is the firms equity multiplier? Answer. ROA = Profit sales x...If you want to get a full essay, order it on our website: OrderEssay.net

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