F1515_Homework2_ - F1515_Homework2 3-1 Days Sales...

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F1515_Homework2 3-1 Days Sales Outstanding DSO = 20 days; ADS = $20,000; AR = ? DSO = AR/S/365 20 = AR/$20,000 (20,000 * 20) AR = $400,000 3-2 Debt Ratio D/A = 1 – 1 2.5 D/A = 1- 0.40 = 0.60 = 60% 3-3 Market Book/Ratio TA = $10 billion; CL = $1 billion; LT debt = $3 billion; CE = $6 billion; Shares outstanding = $800 million; P 0 = $32; M/B = Unknown $6 billion/$800 million = $7.50 M/B = $75.00 shares/ $7.50 = 10 3-4 Price/Earnings Ratio EPS = $1.50; CFPS = $3.00; P/CF = 8.0x; P/E = Unknown P/CF = 8.0 P/$3.00 = 8.0 (3.00 * 8.0) P = 24.00 P/E = 24.00/1.50 = 16.0x 3-5 ROE
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PM = 3%; EM= 2.0; Sales = $100 million; Assets = $50 million; ROE = unknown ROE = 3% x $100 million/$50 million x 2 = 12% 3-6 DuPont Analysis ROA = 10%; PM = 2%; ROE = 15%; S/TA = unknown; A/E = unknown What is the total assets turnover? 10% = 2% x S/TA (10%/2%) S/TA = 5 What is the firm’s equity multiplier? ROE = PM x S/TA x TA/E 15% = 2% x 5 x TA/E 15% = 10% x TA/E (15%/10%) TA/E = 1.5 3-7 Current and Quick Ratio CA = $3 million; CA/CL = 1.5; CA – I/CL = 1.0
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F1515_Homework2_ - F1515_Homework2 3-1 Days Sales...

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