Monday, February 18, 2013

Fi515 Week 2 Homework

FI 515 Homework week 2.
3-1 years Sales Outstanding
Days sales outstanding= receivables/ave sales per day= receivables/annual sales/365)
20 days x $20,000= $400,000
3-2 Debt Ratio
Debt proportion recipe=Debt symmetry + virtue ratio=1
Equity ratio = 1/EM….the equity multiplier is 2.5
1 / 2.5 = .40 equity ratio
Debt ratio= debt ratio +equity ratio=1
1-equity ratio=debt ratio
1-.40=.60%=debt ratio
3-3 Market/ take hold Ratio
Market value per theatrical role =$75
Common equity =6 billion
Number of dowerys outstanding =800M
Market value per pct/ (common equity/# of shares outstanding)= market/book ratio
$75/(6,000,000/800,000,000) = $75/7.5
10 billion= market to book ratio
3-4 PE Ratio
Price per share/earnings per share= P/E
Price per share/cash geological period per share= Price/cash run away
Cash flow per share= $3.00
Price /cash flow ratio= 8.0
8.0 x 3.00 = $24.00
$24.00 / $1.

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50 = 16 (P/E)

3-5 ROE
$100millions (sales) x 3% (profit margin) = $30 million (Net income) Net Income/assets= ROE $30 millions/$50 millions (total assets) = 6% 6% x 2.0 (equity multiplier) = 12% (ROE)
3-6 Du Pont Analysis
ROA=10% Profit margin= 2% ROE= 15%
ROA x Equity Multiplier= ROE (Profit Margin) (Total asset turnover)= ROA
10/2=5 (this is the firms total asset turnover) 15/10=1.5 (this is the firms equity multiplier)
3-7 Current and contiguous Ratios
Current assets= $3 million Current ratio= 1.5 tender ratio= 1.0
Current assets/ Current liability= current ratio
$3million/1.5= $2 million (level of current liability) Current Assets - Current indebtedness= Inventory
$3millions $2 millions = $1 million (level of inventory)If you want to affirm a full essay, order it on our website: Orderessay



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