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