Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 21, 2024

TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $2,300,000 and there are 170,000 shares outstanding. Requirement 1: If

TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $2,300,000 and there are 170,000 shares outstanding.

Requirement 1:

If the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock?

Requirement 2:

If the benchmark price-sales ratio for the company is 3.8, how much will you pay for the stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 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

Mastering Islamic Finance

Authors: Faizal Karbani

1st Edition

1292001445, 978-1292001449

More Books

Students also viewed these Finance questions

Question

Consider the following hypotheses: H0: m 103 HA: m 103 A sample of size 20 is to be taken from a population with a mean of 100 and a standard deviation of 4. Determine the probability of committing a...

Answered: 1 week ago

Question

★★★★★

Rit Corporation paid $1,372,000 for a 30 percent interest in Tel Corporations outstanding voting stock on April 1, 2011. At December 31, 2010, Tel had net assets of $4,000,000 and only common stock...

Answered: 1 week ago

Question

★★★★★

TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $2,300,000 and there are 170,000 shares outstanding. Requirement 1: If the benchmark price-sales ratio...

Answered: 1 week ago

Question

★★★★★

The long term liability section of Twin Digital Corporation's balance sheet as of December 31,2015, included 12% bonds having a face amount of $35 million and a remaining discount of $1 million....

Answered: 1 week ago

Question

★★★★★

Exercise 20-05 a-c Carla Vista Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $282,150 for the year, and machine usage is...

Answered: 1 week ago

Question

★★★★★

How can the integration of Quantum Computing and AI lead to novel advancements in product and service design, and what are the key challenges and opportunities that arise from this convergence?

Answered: 1 week ago

Question

★★★★★

White House Foods has a very simple ____. It says, "In all we do, we do our best." Group of answer choices Strategic implementation Strategic goal Operational formulation Mission statement

Answered: 1 week ago

Question

★★★★★

Briefly describe the components of a change management project plan....

Answered: 1 week ago

Question

★★★★★

Suppose we used a crossover design to test for differences in bruising from subcutaneous sodium heparin injections at three sites in a sample of 15 patients. Surface area of bruises (measured in mm2)...

Answered: 1 week ago

Question

★★★★★

5. List your five favorite TV shows. What do they have in common? Are these the same top five that your friends would list? Why or why not? What is it specifically that you like about these shows?...

Answered: 1 week ago

Question

★★★★★

6. Practice five skills for becoming a more mindful and media literate consumer

Answered: 1 week ago

Question

★★★★★

4. Think of a controversial issue about which you have very strong opinions. Write one paragraph describing the key problem and its main causes, taking care to present your information as objectively...

Answered: 1 week ago

Previous Question Next Question