FIN 515 Week 2 Homework Problems\t\u00a0\t(3-1)\tDays Sales Outstanding\tGreene 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.\t\u00a0\t(3-2)\tDebt Ratio\tVigo 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 debtratio?\t(3-3)\tMarket\/Book Ratio\tWinston Washers’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?\t\u00a0\t(3-4)\tPrice\/Earnings Ratio\tA company has an EPS of $1.50, a cash flow per share of $3.00, and a price\/cash flow ratio of 8.0. What is its P\/E ratio?\t(3-5)\tROE\tNeedham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?\t\u00a0\t(3-6)\tDu Pont Analysis\tDonaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company’s total assets turnover? What is the firm’s equity multiplier?\t(3-7)\tCurrent and Quick Ratios\tAce Industries has current assets equal to $3 million. The company’s current ratio is 1.5, and its quick ratio is 1.0. What is the firm’s level of current liabilities? What is the firm’s level of inventories?\t\u00a0\t(4-1)\tFuture Value of a Single Payment\tIf you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?\t(4-2)\tPresent Value of a Single Payment\tWhat is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?\t(4-6)\tFuture Value: ordinary Annuity versus Annuity Due\tWhat is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?\t\u00a0\t(4-13)\tPresent Value of an Annuity\tFind the\u00a0present value\u00a0of the following\u00a0ordinary annuities\u00a0(see the Notes to Problem 4-12).\t\t\ta. $400 per year for 10 years at 10%\t\t\tb. $200 per year for 5 years at 5%\t\t\tc. $400 per year for 5 years at 0%\t\t\td. Now rework parts a, b, and c assuming that payments are made at the\u00a0beginning\u00a0of each year; that is, they are\u00a0annuities due.\t(4-14)\tUneven Cash Flow Stream\tFind the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint:\u00a0It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator’s cash flow register, you must enter CF\u00a0= 0. Note also that it is quite easy to work the problem with\u00a0Excel, using procedures described in theChapter 4 Tool Kit.)<\/p>\n","protected":false},"excerpt":{"rendered":"
FIN 515 Week 2 Homework Problems \u00a0 (3-1) Days Sales Outstanding Greene 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 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216756","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216756"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216756\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}