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 $1,300,000 and there are 135,000 shares outstanding.

Requirement 1:

If the benchmark price-sales ratio for the company is 5.3, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current stock price

$

Requirement 2:

If the benchmark price-sales ratio for the company is 4.7, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current stock price

$