# Fundamentals of Financial Management

4.1. Days sales

outstanding: Baker brothers has DSO of 40 days, and its annual sales are

$7,300,000. What is its account receivable balance? Assume that it uses a

365-day year period

4-2. DEBT RATIO: Bartley Barstools has an equity multiplier

of 4.2, and its assets are financed with some combination of long-term debt and

common equity. What is its debt-to-assets ratio?

4-3 DuPont analysis:

Doublewide dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%.

What is its total asset turn over? What is its equity multiplier?

4-4 MARKET/BOOK RATIO:

Jaster Jets has a $10 billion in total assets. Its balance sheet shows

$1billion in current liabilities, $3billion in long-term debit, and $6 billion

in common equity. It has $800 million share of common stock outstanding, and

its stock price is $32 percent share.

What is Jaster’s market/book ratio?

4-5 PRICE/EARNINGS RATIO: A company has an EPS of $2.00, a

book value per share of $20, and a market/book ratio of 1.2x. What is its P/E

ratio?

4-6 DUPONT AND ROE: A

firm has a profit margin of 2% and equity multiplier of 2.0. Its sales are $100

million, and it has a total asset of $50 million. What is its ROE?