Fi515 3-1

Saheed Olagunju Homework Wk2 FI515 Chapter 3-1 Days Sales Outstanding Greene Sisters has a DSO of 20 long time. The companys average daily gross sales ar $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. state AR= 20x20000=400,000 3-2 Debt proportionality Vigo Vacations has an fair-mindedness multiplier of 2.5. The companys summations are financed with virtually conspiracy of long-term debt and park rightfulness. What is the companys debt equaliser? Answer Equity multiplier Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/addition = 1.5/2.5 = .6 3-3 trade/ take for balance Winston Washerss stock price is $75 per portion out. Winston has $10 zillion in summation as- sets. Its balance sail shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 one thousand thousand make dos of common stock outstand ing. What is Winstons market/book ratio? Answer commercialise comfort per component =$75 mutual equity= 6,000,000 Number of share outstanding You must Login to side the entire essay. If you are non a member yet, indication Up for free! =800,000,000 Market to book limit = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.

75= degree Celsius 3-4 expense/Earnings Ratio A company has an EPS of $1.50, a interchange stop per share of $3.00, and a price/ capital give ratio of 8.0. What is its P/E ratio? Answer toll /cash fl ow ratio= price per share/ cash flow per sha! re Price per share = $8 x $3 = $24 P.E = Price per share / EPS P.E = $24 / 1.5 = 16 3-5 roe Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is ROE Answer ROE= profit margin x asset turnover x equity multiplier =3% asset turnover = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2 x2= 12%If you want to get a full essay, put up it on our website: OrderCustomPaper.com

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