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 gross gross revenue are $20,000. What is the aim of its accounts receivable? Assume there are 365 days in a year.
Answer
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 equity. What is the companys debt ratio?
Answer
Equity multiplier
Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1
Debt/asset = 1.5/2.5 = .6

3-3
commercialize/ guard Ratio
Winston Washerss stock equipment casualty is $75 per make out. Winston has $10 trillion in total as- sets. Its balance sheet shows $1 one thousand million in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winstons market/book ratio?
Answer
grocery store value per share =$75
Common 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 price/cash flow ratio of 8.0. What is its P/E ratio?




Answer
Price /cash flow ratio= price 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 profit 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= profit margin x asset perturbation x equity multiplier
=3% asset turnover = sales/asset = 50/100= 2 equity multiplier=2
ROE= 3% x2 x2= 12%

3-6
Du Pont Analysis
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



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