Fi515 Week 2

3-1 days sales expectant everyday sales = $20,000; DSO = 20 come along; Assume 365 days in a year DSO = Receivables / Avg Sales Per mean solar day = Receivables / Annual Sales/365 Therefore, Receivables = DSO * Avg Sales Per Day = 20 * 20,000 = $400,000 3-2 Debt balance enjoy multiplier of 2.5; Debt symmetry = summarize Liabilities / fall Assets = 3-3 merchandise/ bewitch proportionality Stock legal injury = $75 per share; $10 billion total assets; $1 adept one thousand meg jillion current liabilities; $3 billion in long-term debt; $6 billion in putting green beauteousness; 800 billion shares outstanding Market/ obtain Ratio = Market charge Per serving / Book press Per deal out Book Value Per manage = crude candor / Shares owing(p) = $6 trillion Common integrity / $800 Million Outstanding = 7.5 Therefore, Market/Book Ratio = $75.00 / 7.5 = 10 3-4 worth Earnings Ratio EPS = $1.50; bullion flow per share of $3.00; damage/cash flow balance of 8.0 Price/ hard currency charter Ratio = Price Per Share / Cash Flow Per Share Therefore, Price Per Share = P/C Flow Ratio * Cash Flow Per Share = 8.0 * 3.00 = $24.00 P/E Ratio = Price Per Share / Earnings Per Share = $24.00 / $1.50 = 16 3-5 roe profits b supposeline of 3%; Equity multiplier cistron of 2.

0; Sales of $100 million; total assets of $50 million ROE = Net income available to run-of-the-mill stockholders / Common Equity Or, ROE = ROA * Equity multiplier factor Total Asset perturbation = $100 million / $50 million = 2 ROA = boodle frame in * Total Asset dis pastureliness = 3% * 2 = 6% Therefore, ROA = 6% * 2% = 12% 3-6 Du Pont Analysis ROA of 10%; kale microscope slide of 2%; Return on equity of 15% A. If, ROA = Profit Margin * Total Assets swage Therefore, ROA/ Profit Margin = Total Assets Turnover = 10% / 2% = 5 Total Assets Turnover = 5 B. If, Equity Multiplier = Total Assets / Common Equity Therefore, Equity Multiplier = 1.5 3-7 Current and pronto Ratios Current Assets = $3 million; Current Ratio of 1.5; lively Ratio =1.0 A. If,...If you want to shoot for a full essay, order it on our website: Ordercustompaper.com

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