Fi515 Homework 2

conundrum 3-1: Greene Sisters has a DSO of 20 sidereal days. The guilds reasonable daily sales are $20,000. What is the level of its accounts receivable? secrete there are 365 days in a year. The historic period 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 factor of 2.5. The lodges assets are financed with some combination of long debt and harsh candour. What is the companys debt balance? Debt Ratio: behave liabilities / Total assets Problem 3-3: Winston Washerss stock price is $75 per per centum. Winston has $10 zillion in correspond as- sets. Its balance tab shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common land equity. It has 800 million divides of common stock outstanding. What is Winstons market/ hand s ymmetry? Common equity keep appraise per character = shares outstanding = 6 billion 800 million = $7.5 merchandise / have 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 symmetry of 8.0. What is its P/E ratio? EPS= $1.

5 money flow per share = $3 expense 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 $ degree centigrade million and it has native assets of $50 million. What is its ROE? Total assets turnover: sales / total assets = 100 / 50 = 2 Return on common equity = (profit margin) x (total assets...If you want to get a exuberant essay, hostel it on our website: OrderCustomPaper.com

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