1. A firm has 650,000 shares of stock outstanding, sales of AED 900 million, net income of AED 6 million, a price-earnings ratio of 8, and a book value per share of AED 45. What is the market-to-book ratio?
1. A firm has 650,000 shares of stock outstanding, sales of AED 900 million, net income of AED 6 million, a price-earnings ratio of 8, and a book value per share of AED 45. What is the market-to-book ratio?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. A firm has 650,000 shares of stock outstanding, sales of AED 900 million, net income of AED 6 million,
a price-earnings ratio of 8, and a book value per share of AED 45. What is the market-to-book ratio?
2.The following information is from Dejlah, Inc.'s, financial statements. Sales (all credit) were AED 800
million for 2020.
Sales to total assets..
Total debt to total assets.
2 times
30%
Current ratio.
3.0 times
Inventory turnover
Average collection period.
Fixed asset turnover.
5.0 times
18 days
5.0 times
Fill in the balance sheet:
Cash.
Accounts receivable
Current debt
Long-term debt.
Total debt
Inventory.
Total current assets
Equity.
Total debt and equity
Fixed assets
Total assets
3.RAM has net income of AED 12 million a profit margin of 6 percent, and an accounts receivable
balance of AED 15 million. What is the collection period?
4. A firm has a debt-total asset ratio of 75 percent, net income 20 million and total assetsAED 800
million What is the return on equity?
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