# Case Analysis Of Winston Washer's Market-To Book Ratio

644 Words 3 Pages
Register to read the introduction… 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?
Market value per share = \$75 common equity = 6,000,000 number of shares outstanding = 800 millions shares
Market-to-book ratio = market value per share/(common equity/number of shares outstanding)

Market-to-book ratio = \$75/(6,000,000/800,000,000)
Market-to-book ratio = \$75/(6,000,000/800,000,000) market-to-book ratio = \$75/7.5 market-to-book ratio = 10
Winston Washer’s market-to-book ratio is 10.
(3-4)
What is its P/E ratio?
(3-5)
ROE
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?
Intermediate Problems 6-10
(3-6)
Du Pont Analysis
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?
(3-7)
Current and Quick Ratios
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?

(4-1)
Future Value of a Single Payment
If you deposit \$10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
(4-2)
Present Value of a Single Payment
What is the present value of a security that will pay \$5,000 in 20 years if securities of equal risk pay 7% annually? your goal?
(4-6)
Future Value: ordinary Annuity versus Annuity

## Related Documents

• ###### Example Of Introductory Physics

. . . . . . . . . . . . . . . 13 How to Do Your Homework Eﬀectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 The Method of Three Passes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Mathematics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Homework for Week 0 . . . . . . . . . . . . . . . . . . . . . . . .…

Words: 224057 - Pages: 897
• ###### Gender Issues In Labour Statistics

Martha Fetherolf Loutfi International Labour Office Geneva iii Women, gender and work Copyright © International Labour Organization 2001 First published 2001 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications…

Words: 243120 - Pages: 973