Fi515 Week 2 Homework

Week 2 Problems (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 eld. The societys just daily sales ar $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. DSO = days sales expectant = receivables / average sales per day = Receivable / (annual sales / 365) 20 = receivables / 20,000 Receivables = 20 * 20,000 Receivables = 400,000 (3-2) Debt proportionality Vigo Vacations has an paleness multiplier of 2.5. The partys assets are financed with round combination of semipermanent debt and parkland fair play. What is the companys debt balance? rectitude Multiplier = 2.5 thus Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 the formula is: Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 or 60% (3-3) marketplace/Book Ratio Winston Washers stock toll is $75 per region. Winston has $10 one megabyte thousand in total assets. Its balance sheet shows $1 one thous and thousand in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 billion shares of common stock outstanding. What is Winstons market/book dimension?

marketplace value per share = $75 common equity = 6,000,000 function of shares outstanding = 800 millions shares Market-to-book ratio = market value per share/(common equity/number of shares outstanding) Market-to-book ratio = $75/(6,000,000/800,000,000) Market-to-book ratio = $75/(6,000,000/800,000,000) market-to-book ratio = $75/7.5 market-to-book ratio = 10 Winston Washers market-to-book ratio is 10. (3- 4) expenditure/Earnings Ratio A company h! as an EPS of $1.50, a cash be given per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? (3-5) ROE Needham Pharmaceuticals has a profit shore of 3% and an equity multiplier of 2.0. Its sales are $ one deoxycytidine monophosphate million and it has total assets of $50 million. What is its ROE? Intermediate Problems 6-10 (3-6) Du Pont epitome Donaldson & watchword has an ROA of 10%, a 2% profit margin, and a upshot on...If you want to get a full essay, tack together it on our website: OrderCustomPaper.com

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