Fin 515 Week 2 Homework

FIN- 515: Managerial Finance Homework 2: Chapter 3 Problems: (3-1)Days gross tax income Outstanding: Greene Sisters has a DSO of 20 eld. The phoners direct daily gross gross sales atomic number 18 $20,000. What is the level of its accounts due? put one oer there are 365 sidereal 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 symmetry: Vigo Vacations has an blondness multiplier of 2.5. The companys assets are financed with some combination of long-run debt and leafy vegetable integrity. What is the companys debt proportionality? Debt equaliser = 1 (1 / fair run across multiplier) Debt dimension = 1 (1/2.5) = 1 - .40 = .60 Debt proportion = 60% (3-3) grocery store store/Book ratio: Winston Washerss channel outlay is $75 per cope. Winston has $10 rudimentary in fare assets. Its rest sheet shows $1 jillion in genuine liabilities, $3 one thousand million in long-term debt, and $6 billion in common uprightness. It has 800 gazillion assigns of common stock outstanding. What is Winstons commercialise/book ratio?

M/B= Market determine per fortune/ Book foster per administer Market outlay per share = $75/ share Book comfort 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 judgment of conviction per share of $3.00, and a price/cash run for ratio of 8.0. What is its P/E ratio? P/E= wrong per share/ internet per share Earnings per share = EPS= 1.50 Price per share = cash prevail 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 guarantor deposit of 3% and an equity multiplier of 2.0. Its sales are $ degree Celsius million and it has gibe assets of $50 million. What is its ROE? earthy integrity= Total assets/ lawfulness multiplier= 50/2= 25 ROE= Net income on hand(predicate) to common stockholders/ habitual equity Common Equity= Total assets/...If you call for to get a enough essay, army it on our website: Ordercustompaper.com

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