FI515_Homework2_LarryBrowning

FI515_Homework2_LarryBrowning - (3-1) Green Sisters has a...

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(3-1) Green Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. A/R = 400,000 (3-2) Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? D/A = 60% (3-3) Winston Washer’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? winstons market cap = 75 * 800 million = $60 billion Book Value = Assets - Liabilities = $10b - $4b = $6b = common equity, therefore no worry about intangibles, goodwill, etc mkt/book ratio = $60b/$6b = 10, i.e. its market price to book ratio is 10. (3-4) A company has a EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio
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FI515_Homework2_LarryBrowning - (3-1) Green Sisters has a...

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