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Need assistance with the understanding of these formulas Drive It Long Golf, Inc. has 25,000 shares of common stock outstanding, and the market price...

Need assistance with the understanding of these formulas

Drive It Long Golf, Inc. has 25,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $58. Assume that this company's growth rate is 9%. As Drive It Long's Senior Financial Manager, offer an authoritative interpretation of the firm's recent performance.

  1. Analyze the financial performance of Drive It Long Golf, Inc. using the following tools:
  2. time and trend analysis
  3. peer-group analysis
  4. two or more ratios financial ratios (introduced in Module Two's assigned readings) in each area that will allow you to evaluate the following four aspects of performance:
  5. Short-term solvency
  6. Asset Utilization
  7. Long-term solvency
  8. Profitability
  9. Evaluate the firm's financial position using the firm's DuPont Identity, considering:
  10. operating efficiency (as measured by profit margin),
  11. asset use efficiency (as measured by total asset turnover), and
  12. financial leverage (as measured by the equity multiplier).
  13. Determine PEG ratio.
  14. Construct Drive It Long's PEG ratio, and
  15. Evaluate this PEG ratio.
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