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 parkland gross revenue ar $20,000. What is the aim of its accounts receivable? Assume at that place ar 365 days in a year. purpose 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 honor. What is the callers debt proportionality? purpose Equity multiplier Asset / lawfulness = 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 calamity is $75 per make out. Winston has $10 trillion in add to inviteher as- sets. Its balance sheet shows $1 one thousand trillion in current liabilities, $3 billion in semipermanent debt, and $6 billion in common equity. It has 800 million donations of common stock outstanding. What is Winsto ns market/ declare ratio? Answer grocery store value per percent =$75 frequent 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 footing/cash flow ratio of 8.0. What is its P/E ratio?

Answer Price /cash flow ratio= expenditure 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 shekels margin of 3% and an equity multipli! er of 2.0. Its sales are $100 million and it has total assets of $50 million. What is roe Answer ROE= remuneration margin x asset turnover rate x equity multiplier =3% asset turnover = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2 x2= 12% 3-6 Du Pont epitome 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: BestEssayCheap.com

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