Case Analysis Of Winston Washer's Market-To 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) …show more content…
What is its P/E ratio?
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
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?
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?
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?
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?
Future Value: ordinary Annuity versus Annuity