FIN 571 Week 2 Individual Homework ual Homework | Page 2

$400 

 11 

 $684
$183 

 4 

 $249
$300 

 7 

 $300

1. Present Values. What is the total present value of the following cash-flow stream if the
interest rate
is 5 percent?
Year Cash Flow
1 $200
2 $400
3 $300
8- Analyze Ratios For Pharmaceuticals. Rank all companies in order of financial health based on
their respective ratios. Utilize only the ratios that are underlined and bolded in your ranking.

Price
P/E
Liquidity
Ratios

AMGN
72.37
48.09
42.82
28.46

PFE MRK
36.92 63.5
27.9 40.57
167.83 21.75
126.82 13.89

ABT
47.15
33.75
26.94
19.29

LLY
73.89
53.7
31.18
22.66

MYL
12.91
7.45
19.86
11.46

IVX
24.69
10.5
49.38
21

Current Ratio

3.3

1.26

1.2

1.35

1.58

4.62

2.05

Quick Ratio
Cash/Currrent Assets
Cash/Current Liabilities
Cash Flow/Current
Liabilities
Cash Flow/Interest
Cash Flow/Assets

2.98
0.69
2.28

1.01
0.4
0.51

0.94
0.36
0.44

0.99
0.13
0.17

1.22
0.42
0.67

3.73
0.56
2.58

1.2
0.16
0.32

1.31

0.34

0.83

0.53

0.56

1.18

0.36

93.52
0.11

38.18
0.07 0.19

27.56 50.97
0.15 0.14 0.18

4.03
0.07

%

41.1

28.7

38.2

17.4

27.8

32.4

13.8

%
%
%
%

27
38.4
16.8
11.7

8.7
12.8
5.5
6

29.3
40.3
14.6
42.3

14
19.7
15.1
21.1

20.4
26.4
11.8
26.2

21.5
33.6
18.1
18.8

7
13.3
6.3
10.3

High
Low
High
Low

Profitability
Gross Profit Margin
Measures
Net Profit Margin
EBIT Margin
Return on Assets
Return on Equity

$/S
$/S