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Corporate Finance

ASSIGNMENT NO.2
Submitted To: Sir Nauman bin Naheed
Submitted By: Ghulam Murtaza
Roll No. 15030
Semester : 7th MBA (3.5) Sec.A
Solves the Following Questions.
Market to book value

= market value of equity


____________________
Book value of equity

= 48623 = 2.5

19393

1. Return on capital

= after tax operating income


Total capitalization

= 3100 = 0.113 or 11.3%


27444

2. Return on equity

= net income
Equity
= 2661
1777.7 = 0.150 or 15.0%

3. Asset turnover ratio

Sales
total asset at start of year

= 66176
41164 = 1.608
4. Inventory turnover ratio

= 43674

10673

= 4.1

5. Receivable turnover ratio

Sales
Receivable at start of year

= 66176
972
= 68.08
6. Profit margin ratio

Net income
Sales
= 2661
66176
7. Operating profit margin

Operating profit margin = Operating income ÷ Total revenue

After tax operating margin


Sales
= Operating Margin = $150,000 / $1,000,000 = 0.15 or 15%
8. Long term debt ratio
= long term debt
Equity
= 8662
19393

= .45 or 45%

9. Total debt ratio

Total liability
Total asset

= 21484
40877 = 0.53 or 53%

10. Current ratio

Current asset
Current liability

=13900 = 1.34
10363

11. Quick ratio

Cash+ marketable security + receivable


Current liability

=
12. Cash ratio

= cash +marketable security+ receivable


Current liability
= 34490+12000
73780

= 0.63

……………………The End………………………………………………