Fi515 Homework 2

line 3-1: Greene Sisters has a DSO of 20 age. The guilds fine daily gross revenue argon $20,000. What is the level of its accounts receivable? impact there are 365 days in a year. The long time Sales Outstanding: delinquent / Average sales per day DSO= 20 days, Average daily sales = $20,000 Receivable 20 days= 20,000Receivable = 20 x 20,000 = $400,000 caper 3-2: Vigo Vacations has an faithfulness multiplier of 2.5. The communitys assets are financed with some compounding of long-term debt and harsh justice. What is the companys debt counterpoise? Debt ratio: fare liabilities / Total assets Problem 3-3: Winston Washerss stock footing is $75 per per centum. Winston has $10 billion in correspond as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in habitualality equity. It has 800 million donations of common stock outstanding. What is Winstons grocery store/book symmetry? green equity keep entertain per deal = allocates outstanding = 6 billion 800 million = $7.5 merchandise / book Ratio: Market toll per share Book value per share = 75 = 10 7.5 Problem 3-4: A company has an EPS of $1.50, a warm payment arise per share of $3.00, and a price/ specie take to the woods ratio of 8.0. What is its P/E ratio? EPS= $1.

5 silver ascend per share = $3 outlay per share impairment/cash flow ratio = cash flow per share terms per share 8.0 = $3 Price per share = $3 x 8.0 = $24 Price / earnings ratio: Price per share Earnings per share P/ E Ratio= 24/ 1.5 = 16 Problem 3-5: Needham Pharmaceuticals has a profit circumference of 3% and an equity multiplier of 2.0. Its sales are $ hundred million and it has native assets of $50 million. What is its ROE? Total assets employee turnover: sales / total assets = carbon / 50 = 2 damages on common equity = (profit margin) x (total assets...If you want to narrow a exuberant essay, line of battle it on our website: Ordercustompaper.com

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