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TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $1,400,000 and there are 140,000 shares outstanding. Requirement 1: If

TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $1,400,000 and there are 140,000 shares outstanding.

Requirement 1:

If the benchmark price-sales ratio for the company is 5.4, how much will you pay for the stock?

Requirement 2:

If the benchmark price-sales ratio for the company is 4.8, how much will you pay for the stock?

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