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Inventory
200,000
If inventory increases by $100,000, what will be the impact on the current
ratio, the quick ratio, and the net-working-capital-to-total-assets ratio? Show
the ratios before and after the changes.
9. Given the following financial data, compute:
10. Assume the following financial data:
Shares outstanding............................................................................
24,000
a. Compute the P/E ratio (stock price to earnings per share).
b. Compute the book value per share (note that book value equals
stockholders’ equity).
c. Compute the ratio of stock price to book value per share.
d. Compute the dividend yield.
e. Compute the payout ratio.
11. Security Analyst A thinks the Collins Corporation is worth 14 times
current earnings. Security Analyst B has a different approach. He assumes
that 45 percent of earnings (per share) will be paid out in dividends and the