Reference no: EM133105564

Question 1 - You determined the following data items for a company:

Sales: $750,000

Interest expense: $18,000

EBIT: $140,000

Net income available to commons stock holders: $100,000

Total assets: $1,200,000

Sales: $750,000

Account receivables: $42,000

Based on the relevant data items above, what is the daily sales outstanding (DSO)?

a) 24.43 days

b) 20.44 days

c) 23.87 days

d) 22.63 days

Question 2 - You determined the following data items for a company:

Sales: $750,000

EBIT: $140,000

Interest expense: $18,000

Net income available to commons stock holders: $100,000

Total assets: $1,200,000

Sales: $750,000

Account receivables: $42,000

Based on the relevant data items above, what is TIE ratio?

a) 7.78 times

b) 4.83 times

c) 6.25 times

d) 5.92 times

Question 3 - You determined the following data items for a company:

Stock price: $78

Total common equity: $675,000

Preferred stock: $25,000

Total shares outstanding (common stock): 10,000

Total shares outstanding (preferred stock): 2,000

Based on the relevant data above, what is the market-to-book ratio?

a) 0.75 times

b) 1.16 times

c) 1.34 times

d) 0.87 times