Fi515 Week 2

3-1 days sales corking mundane sales = $20,000; DSO = 20 dismount on; Assume 365 days in a year DSO = Receivables / Avg Sales Per solar day = Receivables / Annual Sales/365 Therefore, Receivables = DSO * Avg Sales Per Day = 20 * 20,000 = $400,000 3-2 Debt balance recognise multiplier of 2.5; Debt symmetry = total Liabilities / rack up Assets = 3-3 merchandise/ purloin balance Stock toll = $75 per share; $10 zillion total assets; $1 one and only(a) one thousand zillion million current liabilities; $3 billion in long-run debt; $6 billion in putting green loveliness; 800 million shares outstanding Market/ stay fresh Ratio = Market value Per grant / Book cheer up Per plow Book Value Per donation = car park rectitude / Shares large(p) = $6 trillion Common uprightness / $800 Million Outstanding = 7.5 Therefore, Market/Book Ratio = $75.00 / 7.5 = 10 3-4 cost Earnings Ratio EPS = $1.50; notes flow per share of $3.00; charge/cash flow ratio of 8.0 Price/ capital scarper Ratio = Price Per Share / Cash Flow Per Share Therefore, Price Per Share = P/C Flow Ratio * Cash Flow Per Share = 8.0 * 3.00 = $24.00 P/E Ratio = Price Per Share / Earnings Per Share = $24.00 / $1.50 = 16 3-5 roe profits b supposeline of 3%; Equity multiplier constituent of 2.

0; Sales of $100 million; total assets of $50 million ROE = Net income available to normal stockholders / Common Equity Or, ROE = ROA * Equity multiplier factor Total Asset overturn = $100 million / $50 million = 2 ROA = get ahead molding * Total Asset revolutionize = 3% * 2 = 6% Therefore, ROA = 6% * 2% = 12% 3-6 Du Pont Analysis ROA of 10%; pay slide of 2%; Return on equity of 15% A. If, ROA = Profit Margin * Total Assets perturbation Therefore, ROA/ Profit Margin = Total Assets Turnover = 10% / 2% = 5 Total Assets Turnover = 5 B. If, Equity Multiplier = Total Assets / Common Equity Therefore, Equity Multiplier = 1.5 3-7 Current and readily Ratios Current Assets = $3 million; Current Ratio of 1.5; active Ratio =1.0 A. If,...If you want to get a full essay, target it on our website: Ordercustompaper.com

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