What was the firms sales to working capital ratio

Assignment Help Financial Management
Reference no: EM13877966

A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm's sales to working capital ratio?

Reference no: EM13877966

Questions Cloud

Negative position implies receivables exceed payables : Kantorovich Company normally takes 29 days to pay for its average daily credit purchases of $2,400. Its average daily sales are $3,400, and it collects accounts in 24 days. What is its net credit position? Note that a negative position implies receiv..
A cash flow adequacy ratio of one indicates : A cash flow adequacy ratio of one indicates:
Households and nonprofit organizations : Using data from the Z.1 statistical release published by the Board of Governors of the Federal Reserve please answer the questions based on the following data series. Households and nonprofit organizations; home mortgages; liability
Return on assets and return on common shareholders equity : When considering the difference between return on assets (ROA) and return on common shareholders' equity (ROE), Preferred dividends are deducted from the numerator when calculating ROE, but not when calculating ROA.
What was the firms sales to working capital ratio : A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm's sales to working capital ratio?
What is the expected return on a portfolio : A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations.
How much of their assets is financed with equity : Nicole's Neon Signs, Inc. reported a debt to equity ratio of 1.9 times at the end of 2013. If the firm's total assets at year-end are $100 million, how much of their assets is financed with equity?
How do you do this on a financial calculator : You are considering a 20-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.03%, how much should you be willing to pay for the bond?
Best estimate of the stocks current intrinsic price : Decker Tires’ free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC for this company 9.00%. Decker has $4 million..

Reviews

Write a Review

Financial Management Questions & Answers

  Opened an investment account and deposited

One year ago, the Jenkins Center opened an investment account and deposited $4,600. Today, it is depositing another $6,000 and will make a final deposit of $8,500 one year from now. How much will the firm have saved four years from now if it earns an..

  Mortgage loan-how much is the effective annual rate

We receive a mortgage loan for 20 years.. The mortgage rate is 6% per annum. Additionally, the monthly payment we ought to make to the bank to amortize the loan is $2, 500. Fourthly, if we accumulate a lot by year 10(end of the year), how much would ..

  What is the value of stock

Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% pe..

  Cost of capital equal to the expected return on the market

cost of capital equal to the expected return on the market which is 12%. project Used books 0.85 Beta 12% expected return. if the projects are mutually exclusive, which one would be accept.

  Retirement fund withdraw

Gerard has estimated that he is going to need enough in his retirement fund to withdraw $80,000 per year beginning on his 66th birthday and for 19 additional years thereafter. How much will Gerard need in his retirement account at age 65 if his fund ..

  Which type of insurance company generally takes on the great

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company?

  Compiling a listing of her firms accounts receievable

Kelly just compiled compiling a listing of her firm's accounts receievable with each invoice segregated according to the length of time the invoice has been outstanding. What is the name given to this listing?

  Endorsement deal with a prominent sponsor

Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

  Calculate the real exchange rate

Consider the following data on USDMXN and price levels in the United States and Mexico. Calculate the real exchange rate at t=0.

  What is the firms current receivable balance

A surgical supply company sells on terms on 3/10, net 30. That means customers that pay in 10 days get a 3% discount, while customers that do not take the discount must pay in 30 days. What is the firm's average collection period? What is the firm's ..

  Project uses both equity and debt finance

Should a project or an ongoing business use debt or equity financing? What are the pros and cons of each? If a project uses both equity and debt finance, what is the appropriate mix? What types of financing are used by your current organization (or a..

  What is the real rate of return on this bond

A bond that pays interest annually yields a rate of return of 10.00 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd