QUESTION 2 (12 MARKS) Answer the following questions with refer to Windswept Inc, financial statements Windswept, Inc. 2008 Income Statement (S in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $8,450 7,240 400 810 70 $ 740 259 $ 481 Windswept, Inc. 2007 and 2008 Balance Sheets (S in millions) Cash Accounts rec. Inventory Total Net fixed assets Total assets 2007 2008 S 120 S 140 930 780 1.480 1.520 $2,530 $2,440 3.150 3,600 S5,680 S6,040 Accounts payable Long-term debt Common stock Retained earnings 2007 2008 $1,110 S1,120 8.40 1,210 3,200 3,000 530 710 Total liabilities & equity $5,680 56,040 Calculate the following ratios for year 2008. a) Days' sale in receivables (3 marks) b) Equity multiplier (2 marks) c) Cash coverage ratio. (2 marks) d) Return on equity. (2 marks) e) Windswept, Inc. has 90 million shares of stock outstanding. If the price-earnings ratio for 2008 is 12, what is the market price per share of Windswept's stock