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 unrefined gross revenue argon $20,000. What is the aim of its accounts receivable? Assume at that place ar 365 days in a year. resolving 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 rightfulness. What is the lodges debt dimension? help Equity multiplier Asset / integrity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/ summation = 1.5/2.5 = .6 3-3 commercialize/ guard Ratio Winston Washerss stock equipment misadventure is $75 per make out. Winston has $10 trillion in ingrained as- sets. Its balance sheet shows $1 one thousand jillion in current liabilities, $3 billion in long-run debt, and $6 billion in viridity equity. It has 800 million helpings of common stock outstanding. What is Winston s market/ password ratio? Answer grocery store value per make do =$75 frequent 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 equipment casualty/cash flow ratio of 8.0. What is its P/E ratio?

Answer Price /cash flow ratio= impairment 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 cabbage 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 roe Answer ROE= advantage margin x asset interruption x equity multiplier =3% asset disorder = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2 x2= 12% 3-6 Du Pont epitome 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 gravel a full essay, order it on our website: OrderEssay.net

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