Bartley barstools has an equity multiplier

Due date: On Wednesday at 11:00p.m. Each one at least 100 words.  Discuss how financial ratios facilitate financial analysis, and be able to compute and use them to analyze a firm’s performance.  Describe the DuPont system of analysis and be able to use it to evaluate a firm’s performance and identify corrective actions that may be necessary.  Explain what benchmarks are, describe how they are prepared, and discuss why they are important in financial statement analysis.  What are some qualitative factors analysts should consider when evaluating a company’s likely future financial performance? What are some potential problems and limitations of financial ratio analysis? Due date: On Thursday at 9:00p.m. 4-1 DAYS SALES OUTSTANDING Baker Brothers has a DSO of 40 days, and its annual sales are $7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year. 4-2 DEBT RATIO Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its debt-to-assets ratio? 4-3 DuPONT ANALYSIS Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total assets turnover? What is its equity multiplier? 4-4 MARKET/BOOK RATIO Jaster Jets 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, and its stock price is $32 per share. What is Jaster’s market/book ratio? 4-5 PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2×. What is its P/E ratio? 4-6 DuPONT AND ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE? Intermediate Problems 7–18 4-7 DuPONT AND NET INCOME Ebersoll Mining has $6 million in sales, its ROE is 12%, and its total assets turnover is 3.2×. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income? 4-8 BASIC EARNING POWER Duval Manufacturing recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 Duval’s tax rate is 35%. What is its basic earning power (BEP) ratio? 4-9 M/B AND SHARE PRICE You are given the following information: Stockholders’ equity = $3.75 billion, price/earnings ratio = 3.5, common shares outstanding = 50 million, and market/book ratio = 1.9. Calculate the price of a share of the company’s common stock. 4-10 RATIO CALCULATIONS Assume the following relationships for the Brauer Corp.: Sales/Total assets 1.5× Return on assets (ROA) 3.0% Return on equity (ROE) 5.0% Calculate Brauer’s profit margin and debt-to-assets ratio assuming the firm uses only debt and common equity. ...