PSYC 221 Chapter : IMG 0103
15 Mar 2019
Department
Course
Professor
Document Summary
Quick ratio = (current assets inventory)/current liabilities. Net working capital to total assets = net working capital/total assets. Total debt ratio = (total assets total equity)/total assets. Debt to equity ratio = total debt/total equity. Long-term debt ratio = long-term debt/(long-term debt + total equity) Days" sales in inventory = 365 days/inventory turnover. Days" sales in receivables = 365 days/receivables turnover. Return on assets (roa) = net income/total assets. Return on equity (roe) = net income/total equity. Dupont identity: roe = net income/sales x sales/assets x assets/equity. Market-to-book ratio = market value per share/book value per share. Tobin"s q = market value of assets/replacement cost of assets. = (net income - dividends)/net income g = roe x b. Arithmetic average return: ra = (r1 + r2 + r3 + rn)/n. Geometric average return: rg = [(1+r1)(1+r2) (1+rn)]1/n 1. Capm equation: is = rf + x [e(rm) rf]
