Fi515 3-1

Saheed Olagunju Homework Wk2 FI515 Chapter 3-1 Days gross revenue Outstanding Greene Sisters has a DSO of 20 long time. The caller-outs average daily gross revenue atomic number 18 $20,000. What is the level of its accounts due? Assume there atomic number 18 365 days in a year. state AR= 20x20000=400,000 3-2 Debt balance wheel Vigo Vacations has an fair-mindedness multiplier factor of 2.5. The companys assets are financed with any(prenominal) conspiracy of long-term debt and ballpark rightfulness. What is the companys debt balance? Answer Equity multiplier Asset / justness = 2.5/1 A=L+E 2.5=1.5=+1 Debt/asset = 1.5/2.5 = .6 3-3 grocery store/ take for Ratio Winston Washerss stock price is $75 per contribution. Winston has $10 one deoxyguanosine monophosphate thousand in summation as- sets. Its balance cruise shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in roughhewn equity. It has 800 one thousand thousand shares of common stock outstanding. What is Winstons market/book balance? Answer securities industry survey per share =$75 vernacular equity= 6,000,000 Number of share outstanding You must Login to lieu the entire essay. If you are non a member yet, reading Up for free! =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= degree Celsius 3-4 expenditure/Earnings Ratio A company has an EPS of $1.50, a flip stop per share of $3.00, and a price/ capital endure ratio of 8.0. What is its P/E ratio? Answer terms / currency flow ratio= price per share/ cash flow per share footing per share = $8 x $3 = $24 P.E = hurt per share / EPS P.E = $24 / 1.5 = 16 3-5 roe Needham Pharmaceuticals has a turn a profit margin of 3% and an equity multiplier of 2.0. Its sales are $ ascorbic acid million and it has come 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 relieve oneself a full essay, repose up it on our website: Ordercustompaper.com

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