Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Explain how a business finances its operations and expansion. CURRENT RATIO (Current Assets / Current Liabilities) TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets)

Explain how a business finances its operations and expansion.


CURRENT RATIO (Current Assets / Current Liabilities)

TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets)














Current Assets 53.7




Total Revenue 166.06


Current Liabilities 44.37
1.210277214


Total Assets 71.23
2.331321073




























WORKING CAPITAL (Current Assets - Current Liabilities)

FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity)














Current Assets 940.3




Total Assets 26.03


Current Liabilities 166.06
774.24


Shareholder's Equity 21.35
1.219203747




























DEBT RATIO (Total Liabilities / Total Assets)

NET PROFIT MARGIN (Net Income / Total Revenue)














Total Liabilities 94.83




Net Income 26.03


Total Assets 166.06
0.571058653


Total Revenue 166.06
0.156750572




























EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding)

RETURN ON ASSETS (Net Income / Total Assets)














Net Income 26.03




Net Income 26.03


Shares Outstanding 2.41
10.80082988


Total Assets 166.06
0.156750572




























PRICE EARNINGS RATIO (Share Price (end of quarter / EPS)

RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity)














Stock Price
3.12




NI - Pref. Div. 26.03


EPS
10.32
0.302325581


Shareholder's Equity 71.23
0.365435912














Step by Step Solution

3.36 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Businesses can finance their operations and expansion through various sources of financing Here are the key ways a business can finance itself 1 Curre... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Finance The Logic and Practice of Financial Management

Authors: Arthur J. Keown, John D. Martin, J. William Petty

8th edition

132994879, 978-0132994873

More Books

Students also viewed these Finance questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago