Masters Finance Assignment- 4 Questions about Financial Analysis & Planning
Instructions
| NAME: | |||
| To complete the homework assignments in the templates provided: | |||
| 1. | The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases. | ||
| 2. | You will enter the required information into the shaded cells. | ||
| 3. | The cells are coded: | ||
| a. | T requires a text answer. | ||
| b. | C requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary. | ||
| c. | F requires a number only. In some problems, a “Step 1” is added to help you solve the problem. | ||
| 4. | Name your assignment file as "lastnamefirstinitial-FINC600-Week#", and submit by midnight ET, Day 7. | ||
&16Instructions
Principles of Corporate Finance, Concise, 2nd Edition
P18-2
| Problem 18-2 | ||||
| Table 18.11 (p. 484 and also provided below) gives abbreviated balance sheets and income statements for Estée Lauder Companies. Calculate the following ratios: | ||||
| Answers: | ||||
| Ratio | Formula | Calculation | ||
| a. | Return on assets | T | C | TIP: Interest rate - p. 468 |
| b. | Operating profit margin | T | C | |
| c. | Sales-to-assets ratio | T | C | |
| d, | Inventory turnover | T | C | |
| e. | Debt–equity ratio | T | C | |
| f. | Current ratio | T | C | |
| g. | Quick ratio | T | C | |
Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.
Principles of Corporate Finance, Concise, 2nd Edition
P18-23
| Problem 18-23 |
| Suppose that you wish to use financial ratios to estimate the risk of a company's stock. Which of those that we have described in this chapter are likely to be helpful? Can you think of other accounting measures of risk? |
| Answer: |
| T |
Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.
P19-11
| Problem 19-11 |
| If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days? |
| Answers: |
| 30 day delay T |
| 60 day delay T |
Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.
P19-17
| Problem 19-17 |
| Corporate financial plans are often used as a basis for judging subsequent performance. What do you think can be learned from such comparisons? What problems are likely to arise, and how might you cope with these problems? |
| Answer: |
| What do you think can be learned from such comparisons? T |
| What problems are likely to arise, and how might you cope with these problems? T |
Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.