Financial Ratio, Other Engineering

Assignment Help:
The following information was extracted from the accounting records of De Walt Company as at 28 February 2011 (the end of their financial year):
Sales (50% on credit) 1 400 000
Cost of Sales (all goods purchased on credit) 700 000
Net Income after tax 120 000
Tangible Assets 530 000
Inventory 200 000
Receivables 100 000
Cash 50 000
Payables 150 000
Loans @ 10% pa 100 000
Equity (300 000 ordinary shares @ R2 per share) 630 000
NB: Shares are trading at R2,40 per share at present
Required
1.1. Calculate the current ratio and acid test ratio for the current year and comment (NB: ratios for the previous year: Current 1,6:1 and acid test 0,6:1)
1.2. Calculate the debt equity ratio and comment on their level of gearing.
1.3. Calculate the EPS
1.4. Calculate the PE Ratio and comment on its significance.
1.5. Calculate the Market to Book ratio. Explain the importance of this ratio.

Related Discussions:- Financial Ratio

Various cementing materials, The various cementing materials are classified...

The various cementing materials are classified as follows. a) Argillaceous cementing materials b) Calcareous cementing materials c) Carbonaceous cementing materials Argillaceous Ma

Inversion circle, what do you understand by inversion circle?

what do you understand by inversion circle?

Elastic and plastic deformation, Q. Define elastic and plastic deformation ...

Q. Define elastic and plastic deformation and differentiate between them. Ans. Elastic deformation : Elastic deformation is that part of the deformed material, when the

Pressure relief valve - aircraft engine, PRESSURE RELIEF VALVE The pres...

PRESSURE RELIEF VALVE The pressure relief valve shown in the figure. controls the oil pressure at the pre-set value demanded by the system. The valve is normally integral with

Capital budgeting decisions, Capital Budgeting Decisions The most important...

Capital Budgeting Decisions The most important function of a finance manager is the efficient allocation of its capital. The investment decision of a firm is termed as capital budg

Technical Paper, I need help summarizing a technical paper.

I need help summarizing a technical paper.

#Corporate Finance Homework, #As an investment advisor you have been approa...

#As an investment advisor you have been approached by a client called Ramesh, who wants some help in investment related matters. Ramesh is currently 45 years old and has Rs 6, 00,

Finance ass, Let C(K) denote a European vanilla Call option with strike pri...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd