Finance Question

 

1. 1Perry Technologies had the following financial information for the past year:

   Inventory turnover = 8xQuick ratio = 1.5xSales = $860,000Current ratio = 1.75 Using the above information as needed, what were Perry’s current liabilities?

2. Peterson Packaging Corp. has $9 billion in total assets. The company’s basic earning power (BEP) ratio is 9 percent, and its times interest earned ratio is 3.0. Peterson’s depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and Peterson must also pay an additional $0.3 billion towards principal payments on outstanding loans and long-term debt (also known as a sinking fund payment). What is Peterson’s EBITDA coverage ratio?

 

3.  Roenfeld Corp. believes the following probability distribution exists for its stock. What is the expected return (r), the standard deviation (σ), and the coefficient of variation on the company’s stock?

Expansion: Expected return (ri) = 25%; Probability (Pi) = 0.45;

Normal: Expected return (ri) = 15%; Probability (Pi) = 0.50;

Recession: Expected return (r
i) = 5%; Probability (P
i) = 0.05