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Fin 3 3 6 Intermediate Corporate Finance Homework Lesson 6 Using the MicroDrive 2 0 0 1 Financial Statements in the Lesson 6 Supplements, calculate
Fin Intermediate Corporate Finance
Homework Lesson
Using the MicroDrive Financial Statements in the Lesson Supplements, calculate the following
ratios for MicroDrive using your chapter lecture videos as your guide. Show the numbers that
you use in your calculation.
Liquidity Shortterm Solvency
Current Ratio: Current AssetsCurrent Liabilities
Quick Ratio: CA InventoryCL
Activity
Total Asset Turnover TAT: Annual SalesTotal Assets
Fixed Asset Turnover FAT: Annual SalesFixed Assets
Receivables Turnover RTO Annual Credit Sales AVG Receivables
Average Collection Period: RTO
Inventory Turnover ITO: COGS AVG Inventory
Days in Inventory: ITO
Leverage and Coverage
Debt Ratio: Total DebtTotal Assets
DebttoEquity Ratio: Total DebtTotal Equity
Equity Multiplier: Total AssetsCommon Equity
Times Interest Earned Interest Coverage: EBITInterest Expense
Profitability Ratios
Gross Profit Margin: Annual SalesCOGSAnnual Sales
Operating Profit Margin: EBIT NOIAnnual Sales
Net Profit Margin: NI commonAnnual Sales
Return on Assets ROA: NI commonTotal Assets
Return on Common Equity ROE: NI commonCommon Equity
Market Value Ratios:
PriceEarnings PE: Market priceEarningspershare
PricetoBook PB: Market priceBook valuepershare
PricetoSales PS: Market priceSalespershare
Dividend Yield: Dividend per shareMarket price per share
Earnings per share EPS: NI available to CSShares outstanding
Dividends per share DPS: Dividends to CSShares outstanding
Dividend Payout Ratio DPO: Dividends to CSNI available to CS
Retention Ration b: DPO
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