Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.7

image text in transcribed

Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.7 million and there are 144,000 shares outstanding. a. If the benchmark price-sales ratio is 6.4, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 5.7? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price at a price-sales of 6.4 b. Stock price at a price-sales of 5.7

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_2

Step: 3

blur-text-image_3

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

Derivatives Markets

Authors: Rober L. Macdonald

4th edition

321543084, 978-0321543080

More Books

Students also viewed these Finance questions

Question

Why are large corporations often said to be publicly owned?

Answered: 1 week ago