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Homework Fi515


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

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

= 1 – 0.40 = 0.60 = 60%

3-3 TA = $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 value = = $7.50. M/B = = 10. 3-4 EPS = $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.

3-5 PM = 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%.

3-6 ROA = 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. 3-7 CA = $3,000,000; = 1.5; = 1.0; CL = ?; I = ?

4-1 0 1 2 3 4 5 | | | | | | PV = 10,000 FV5 = ? FV5 = $10,000(1.10)5 = $10,000(1.61051) = $16,105.10. Alternatively, with a financial calculator enter the following: N = 5, I/YR = 10, PV = -10000, and PMT = 0. Solve for FV = $16,105.10.

4-2 0 5 10 15 20 | | | | | 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 Ordinary annuity: 7% 0 1 2 3 4 5 | | | | | | 300 300 300 300 300 FVA5 = ? With a

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