Fi 515

Samuel Osei FI515 Wk 2 Homework 3.1 DSO=20. Average Sales per day is 20,000. let R represent Receivables. DSO=Receivable/Average Sales per Day 20 = R/20,00020 x 20,000 = R. R is therefore 400,000 3.2 virtuousness multiplier factor = innate assets/common conductholder uprightness =TA/{TA-DC}, where DC = debt capital. Using Algebraic calculation __TA = 2.5 TA= 2.5{TA} -2.5{DC} TA-DC 2.5 {DC} = 1.5{TA} TA/DC = 1.5/2.5 = 0.6x100 = 60% Debt balance = 60% 3.3 Stock scathe is $75 per sh ar, Total summations $10b, Current Liabilities $ 1b, bulky term liability $3b, Common equity $6b, Common stock outstanding $800 m. Market /Book Ratio= Market cost per trade/ Book value per share =75/book prize per share. Book Value per partake = Common lawfulness/ get bys not bad(p)=6,000,000,000/800,000,000=7.5 M/B ratio = 75/7.

5=10 3.4. EPS $1.50, cash die demanding per Share $3.00, Price Cash carry Ratio 8.0, P/E Ratio is Price per Share/ Earnings Per Share Price per Share= (Cash Flow per Share $3.00 x Cash Flow Ratio 8.0) = 3 x 8 = 24 P/E Ratio = 24/1.5 =16.0 3.5 Profit valuation account 3%, legality multiplier factor 2.0, Sales $100m, Total assets $50m with child(p) roe=ROA= (Profit Margin x {Sales/Total Assets}) ROA= (3% x {100/50=})! = .03x2 = 0.06 ROE = ROA x Equity Multiplier =0.06 x 2.0 = 0.12 or 12% 3.6 ROE= ROA x Equity Multiplier 15=10 (Equity Multiplier) 15/10 = Equity Multiplier Multiplier equity=1.5 ROA= (Profit Margin) x (Total asset turnover) 10=2(Total Asset upset) 10/2= Total Asset Turnover Total Asset=5 3.7 Current Ratio = CA/CL. If on zephyr assets are 3 million and the current ratio is 1.5, the liabilities are 2 million. i.e. (3 million/ 2 million = 1.5 current ratio.) Inventories submit to be 1...If you want to get a full essay, line of battle it on our website: OrderEssay.net

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