AR = $400,000 (3-2) Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio?

D/A = 60% (3-3) Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?

M/B = 10 (3-4) A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?

P/E = 16.0 (3-5) Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?

ROE = 12%

(3-6) Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company’s total assets turnover? What is the firm’s equity multiplier?

S/TA = 5

TA/E = 1.5

(3-7) Ace Industries has current assets equal to $3 million. The company’s current ratio is 1.5, and its quick ratio is 1.0. What is the firm’s level of current liabilities? What is the firm’s level of inventories?

CL = $2,000,000

Inv = $1,000,000

(4-1) If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

FV = $16,105.10

(4-2) What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?

FV = $1,292.10

(4-6) What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?

FV = $1,725.22

FVA = $1,845.99

(4-13) Find the