Problem 7-14 Stock Valuation and PS Ratio [LO 2]

TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $2,400,000 and there are 190,000 shares outstanding.

If the benchmark pricesales ratio for the company is 4.6, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $_____________

If the benchmark pricesales ratio for the company is 4, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $____________