BUSINESS FINANCE教学资料 Tutorial 4.pdfVIP

Tutorial 4 Ratio analysis and Time Value of Money 1. The Daily News had net income of $121,600 of which 40 percent was distributed to the shareholders as dividends. During the year, the company sold $75,000 worth of common stock. What is the cash flow to stockholders? 2. A firm has total debt of $1,450 and a debt-equity ratio of 0.30. What is the value of the total assets? 3. Marios Home Systems has sales of $2,780, costs of goods sold of $2,120, inventory of $496, and accounts receivable of $426. How many days, on average, does it take Marios to sell its inventory? 4. Jupiter Explorers has $8,400 in sales. The profit margin is 3 percent. There are 6,200 shares of stock outstanding. The market price per share is $1.40. What is the price- earnings ratio? Use the above information for the next 2 problems: 5. Windswept, Inc. has 580 million shares of stock outstanding. Its price-earnings ratio for 2010 is 16. What is the market price per share of stock? 6. What amount should be included in the financing section of the 2010 statement of cash flows for dividends paid? $926 million $250 million $981 million $625 million $455 million 7. Tracy invested $1,000 five years ago and earns 4 percent interest on her investment. By leaving her interest earnings in her account, she increases the amount of interest she earns each year. The way she is handling her interest income is referred to as which one of the following? 8. Steve invested $100 two years ago at 10 percent interest. The first year, he earned $10 interest on his $100 investment. He reinvested the $10. The second year, he earned $11 interest on his $110 investment. The extra $1 he earned in interest the second year is referred to as: 9. Samantha opened a savings account this morning. Her money will earn 5 percent interest, compounded annu