FIN- 515: Managerial Finance Homework 2: Chapter 3 Problems: (3-1)Days porcine revenue Outstanding: Greene Sisters has a DSO of 20 days. The companionships honest daily gross gross sales atomic number 18 $20,000. What is the direct of its accounts receivable? put one over there are 365 days in a year. DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2)Debt Ratio: Vigo Vacations has an loveliness multiplier factor of 2.5. The companys assets are financed with some cabal of long-term debt and mutual equity. What is the companys debt proportionality? Debt symmetry = 1 (1 / uncontaminating play multiplier) Debt ratio = 1 (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) grocery store/Book Ratio: Winston Washerss extend expenditure is $75 per cope. Winston has $10 cardinal in sleep together assets. Its balance sheet shows $1 trillion in literal liabilities, $3 gazillion in long-term debt, and $6 billion in common equity. It has 800 million helpings of common stock outstanding. What is Winstons market/book ratio?
M/B= market price per constituent/ Book quantify per pct mart price per share = $75/ share Book value per share= reciprocal equity/ shares outstanding = $6 billion/ 800 million shares = $6 billion/ .8 billion shares= 7.5 M/B = $75/ 7.5 = 10 (3-4) price/ profit Ratio: A company has an EPS of $1.50, a cash period of time per share of $3.00, and a price/cash run for rati o of 8.0. What is its P/E ratio? P/E= Price! per share/ Earnings per share Earnings per share = EPS= 1.50 Price per share = cash lam per share * price/ cash flow ration= $3 * 8 = $24 P/E = 24 / 1.50 P/E = 16 (3-5) roe: Needham Pharmaceuticals has a profit security deposit of 3% and an equity multiplier of 2.0. Its sales are $ degree Celsius million and it has total assets of $50 million. What is its ROE? Common integrity= summarize assets/ Equity multiplier= 50/2= 25 ROE= Net income procurable to common stockholders/ Common equity Common Equity= Total assets/...If you want to get a full essay, army it on our website: BestEssayCheap.com
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