Fi515 Homework 2

riddle 3-1: Greene Sisters has a DSO of 20 twenty-four hour periods. The guilds bonny daily sales are $20,000. What is the level of its accounts receivable? pretend there are 365 days in a year. The age Sales Outstanding: due / Average sales per day DSO= 20 days, Average daily sales = $20,000 Receivable 20 days= 20,000Receivable = 20 x 20,000 = $400,000 Problem 3-2: Vigo Vacations has an truth multiplier of 2.5. The ships companys assets are financed with some combination of semipermanent debt and harsh fair-mindedness. What is the companys debt balance? Debt Ratio: come up liabilities / Total assets Problem 3-3: Winston Washerss stock price is $75 per per centum. Winston has $10 jillion in correspond as- sets. Its balance canvass shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in third estate equity. It has 800 million pcts of common stock outstanding. What is Winstons market / earmark symmetry? Common equity keep survey per fortune = shares outstanding = 6 billion 800 million = $7.5 merchandise / script Ratio: Market price per share Book value per share = 75 = 10 7.5 Problem 3-4: A company has an EPS of $1.50, a immediate payment arise per share of $3.00, and a price/cash flow proportionality of 8.0. What is its P/E ratio? EPS= $1.5 money flow per share = $3 expenditure per share Price/cash flow ratio = cash flow per share Price 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 margin of 3% and an equity multiplier of 2.0. Its sales are $ nose candy million and it has native assets o f $50 million. What is its ROE? Total asset! s turnover: sales / total assets = 100 / 50 = 2 Return on common equity = (profit margin) x (total assets...If you want to get a exuberant essay, establish it on our website: OrderCustomPaper.com

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