Asset management ratios

Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio.

Consider the following case:

Franklin Aerospace has a quick ratio of 2.00x, $36,225 in cash, $20,125 in accounts receivable, some inventory, total current assets of $80,500, and total current liabilities of $28,175. The company reported annual sales of $200,000 in the most recent annual report.

Over the past year, how often did Franklin Aerospace sell and replace its inventory?

9.11x

8.28x

2.86x

8.01x

The inventory turnover ratio across companies in the aerospace industry is 9.108x. Based on this information, which of the following statements is true for Franklin Aerospace?

Franklin Aerospace is holding more inventory per dollar of sales compared with the industry average.

Franklin Aerospace is holding less inventory per dollar of sales compared with the industry average.

You are analyzing two companies that manufacture electronic toys—Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $200,000 each. You’ve collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $510,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You’ve collected data from the companies’ financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.)

Data Collected (in dollars)

Using this information, complete the following statements to include in your analysis.

Answer choices

1A. High or Low

1B. Like Games or Our Play

1C. Our play Or Likes Games

2A. Lower or Higher

2B. Higher or Lower

3A. 1.05X or 0.80X

3B Lower or Higher

What is the NPV for the car selection example below?

Example: Buy an Electric Vehicle?

Chevy Malibu: $30,000 cost  12K miles/yr  30 mph  Maintenance: $1K in year 1; 5% CAGR  Resale of $5K in ten years  Gas: $3.50/g; 10% CAGR  D = 7% 

Nissan Leaf: $40,000 cost  12K miles/yr  5 miles per kWh  Maintenance: $700 in year 1; 5% CAGR  New battery in year 5: $5,000  Resale of $3K in ten years  $0.11/kWh; 10% CAGR  D = 7%

Suppose there is a 3-year bond with a $1000 face value, 12% coupon payments and a 6% yield to maturity.

a) Without any calculation, briefly explain whether this bond will be selling a premium or a discount

b) Calculate the price of this bond.

c) Calculate the duration of this bond. d) If someone buys this bond and holds it for three years, what is their rate of return? e) Suppose after one year, interest rates in the economy fall by 2%. If the person that bought this bond sells it at that time, what would be their rate of return? (Hint: First think about what the fall in interest rates will do to the bond’s price and then think about the rate of return.)

Suppose that the average waiting time for a patient at a physician's office is just over 29 minutes. In order to address the issue of long patient wait times, some physicians' offices are using wait-tracking systems to notify patients of expected wait times. Patients can adjust their arrival times based on this information and spend less time in waiting rooms. The following data show wait times (minutes) for a sample of patients at offices that do not have a wait-tracking system and wait times for a sample of patients at offices with a wait-tracking system.

You plan to purchase a $180,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 5.5 percent. You will make a down payment of 10 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.
b. Calculate the amount of interest and, separately, principal paid in the 20th payment.
c. Calculate the amount of interest and, separately, principal paid in the 110th payment.
d. Calculate the amount of interest paid over the life of this mortgage.

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

The Baldwin Company is considering investing in a machine that produces bowling balls. The cost of the machine is $100,000 and production is expected to be 8,000 units per year during the five-year life of the machine. The expected resale value is $5,000 (in real terms).
Since the interest in bowling is declining, the management believes that the nominal price of bowling balls will increase at only 2% per year. The nominal price of bowling balls in the first year will be $20. On the other hand, plastic used to produce bowling balls is rapidly becoming more expensive. Because of this, production costs are expected to grow at 10% (nominally) per year. First-year nominal production costs will be $10 per unit.
The company's nominal cost of capital is 15%. The rate of inflation is 5%. Ignore taxes. Should the project be undertaken?

Please give me a answer with equations and step by step solutions so that I can understand.

Long-Term Financing Needed At year-end 2016, Wallace Landscaping’s total assets were $1.6 million and its accounts payable were $375,000. Sales, which in 2016 were $2.7 million, are expected to increase by 20% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $475,000 in 2016, and retained earnings were $260,000. Wallace has arranged to sell $155,000 of new common stock in 2017 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2017. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 3%, and 50% of earnings will be paid out as dividends.

What was Wallace's total long-term debt in 2016? Round your answer to the nearest dollar.

What were Wallace's total liabilities in 2016? Round your answer to the nearest dollar.  

How much new long-term debt financing will be needed in 2017? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.

What is the value per share be of a company with the following dividends?

Next years Dividend is expected to be $1.40

Expect Div Growth rates

13.40%

12.70%

10.80%

9.65%

7.70%

ROE = 13.47%

Plowback Rate= 61%

US T-BILL = 1.15%

BETA = 1.07

expect ret in Mkt = 10.83%

Please compute with excel

 Abner​ Corporation's bonds mature in 17 years and pay 11 percent interest annually. If you purchase the bonds for ​$850​, what is your yield to​ maturity?

1.a) Briefly describe how the Efficient Frontier and the Capital Allocation Line (CAL) are determined. Include all steps and procedures.

1.b) The CAL has the following parameters: Risk-free rate is 3 percent, return on the optimal risky portfolio is 12 percent, with a standard deviation (SD) of 20 percent. What is your expected return if you limit your risk to a Standard Deviation of 10 percent?

1.c) How do you achieve a 35 percent return using the parameters above? Explain and show precisely how you would achieve the return and also calculate the standard deviation of the portfolio.

This is all the info I've been given. I need to draw the efficient frontier and capital allocation line and describe both.

The market price is ​$1,200 for a 9 ​-year bond ​($1,000 par​ value) that pays 8 percent annual​ interest, but makes interest payments on a semiannual basis ​(4 percent​ semiannually). What is the​ bond's yield to​ maturity?

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