Fi515 Week 2 Homework

Week 2 Problems (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 eld. The communitys just daily gross revenue ar $20,000. What is the level of its accounts receivable? Assume there atomic number 18 365 days in a year. DSO = days sales spectacular = 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 fraternitys assets are financed with round combination of semipermanent debt and parkland impartiality. What is the companys debt balance? candour Multiplier = 2.5 therefore 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 set is $75 per assign. Winston has $10 one universal gravitational constant thous and in total assets. Its balance sheet shows $1 one thousand thousand in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 zillion shares of common stock outstanding. What is Winstons market/book balance?

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 rati o = 10 Winston Washers market-to-book ratio! is 10. (3-4) expenditure/Earnings Ratio A company has 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 blow 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, coiffe it on our website: OrderCustomPaper.com

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