Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Our Space is a social media site that is growing in popularity. The firm has been around for a few years and has created a

image text in transcribed
image text in transcribed
Our Space is a social media site that is growing in popularity. The firm has been around for a few years and has created a nice market niche for itself. In fact, it actually turned a profit last year, abeit a fairly small one. Afler doing some basic research on the company. you've decided to take a closer look. You plan fo use the price-to-sales ratio to value the stock, and you have collecled P/S multiples on the following social media companies: Find the average P/S ratio for these three firms. Given that Our Space is expected to generate $50 million in sales next year and will have 21 million shares of stock outstanding, use the average P/S ratio you computed above to put a value on Our Space's stock. The average P/s ratio for the 3 firms is (Round to two decimal places.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

=+How does it affect the steady-state rate of growth?

Answered: 1 week ago