Fi515 Week2 Home Work

Problems (p.112) 3-1 (Days Sales Outstanding) Formula for DSO (days sales outstanding) = Receivables/ Ave sales per day = Receivables/ (annual sales/365) 20 days x $20,000= $400,000 (Level of account receivable) 3-2 (Debt Ratio) Debt dimension commandment is:- Debt ratio + candour ratio=1 The equity multiplier is 2.5 equity ratio= 1/EM 1/2.5=0.40 (equity ratio) The formula for debt ratio is: - Debt ratio + equity ratio= 1 1 Equity ratio= Debt ratio 1 0.40= 0.60% (is the debt ratio) 3-3 ( commercialise/Book Ratio) Market apprise per dower= $75 gross equity= 6 billion Number of shares outstanding= 800M Market value per share/ (common equity/number of shares outstanding) = Market-to-book ratio $75/ (6,000,000,000/800,000,000) $75/7.5 10 billion (is Winston Washers Market-to-book ratio) 3-4 (PE Ratio) Price per share/ sugar per share= P/E Price per share/ ambitious currency pay heed per share= Price/ bullion flow Cash flow per share= $3.00 Price /cash flow ratio= 8.0 8.0 x 3.00 = $24.00 (price) $24.00 / $1.50 = 16 (P/E) 3-5 ( roe) $100 trillions (sales) x 3% (profit margin) = $30 million ( cabbage income) Net Income/ pluss= roe $30 millions/$50 millions ( add to hitchher assets) = 6% 6% x 2.0 (equity multiplier) = 12% (ROE) 3-6 (Du Pont Analysis) ROA=10% Profit margin= 2% ROE= 15% ROA x Equity Multiplier= ROE (Profit Margin) (Total asset turnover)= ROA 10/2=5 (this is the firms total asset turnover) 15/10=1.5 (this is the firms equity multiplier) 3-7 ( contemporary and Quick Ratios) underway assets= $3 million true ratio= 1.5 Quick ratio= 1.0 genuine assets/ Current indebtedness= occurrent ratio $3million/1.5= $2 million (level of current liability) Current Assets - Current Liability= Inventory $3millions $2 millions = $1 million (level of inventory) Problems (pp. 165-167) 4-1 (FV of oneness Amount) FVn=PV (1+I) n where FV = Future value PV = investment I = interes t rate N = period (formula copied from excel! ) $10,000 (1.10) 5 = $16105.10 (FV5) 4-2...If you postulate to get a full essay, order it on our website: OrderEssay.net

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