Fi515 Week 2 Solution

3-1DSO = 20 days; ADS = $20,000; AR = ?




3-2A/E = 2.5; D/A = ?



= 1 0.40 = 0.60 = 60%



3-3TA = $10,000,000,000; CL = $1,000,000,000; LT debt = $3,000,000,000; CE = $6,000,000,000; Shares outstanding = 800,000,000; P0 = $32; M/B = ?

Book think of = = $7.50.

M/B = = 10.
3-4EPS = $1.50; CFPS = $3.00; P/CF = 8.0; P/E = ?

P/CF = 8.0
P/$3.00 = 8.0
P = $24.00.

P/E = $24.00/$1.50 = 16.0.


3-5PM = 3%; EM = 2.0; Sales = $100,000,000; Assets = $50,000,000; roe = ?

roe= PM TATO EM
= NI/S S/TA A/E
= 3% $100,000,00/$50,000,000 2
= 12%.


3-6ROA = 10%; PM = 2%; ROE = 15%; S/TA = ?; A/E = ?
ROA = NI/A; PM = NI/S; ROE = NI/E

ROA = PM S/TA
NI/A = NI/S S/TA
10% = 2% S/TA
S/TA = 5.

ROE = PM S/TA TA/E
NI/E = NI/S S/TA TA/E
15% = 2% 5 TA/E
15% = 10% TA/E
TA/E = 1.5.

3-7CA = $3,000,000; = 1.5; = 1.0;

CL = ?; I = ?












10%
4-1012345
||||||
PV = 10,000 FV5 = ?

FV5= $10,000(1.10)5
= $10,000(1.61051) = $16,105.10.

Alternatively, with a financial calculator commemorate the following: N = 5, I/YR = 10, PV = -10000, and PMT = 0. Solve for FV = $16,105.10.


7%
4-205101520
|||||
PV = ?FV20 = 5,000

With a financial calculator enter the following: N = 20, I/YR = 7, PMT = 0, and FV = 5000. Solve for PV = $1,292.10.

4-6 universal annuity:
7%
012345
||||||
300300300300300
FVA5 = ?

With a financial calculator enter the following: N = 5, I/YR = 7, PV = 0, and PMT = 300. Solve for FV =...If you want to get a safe essay, order it on our website: Ordercustompaper.com



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