TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $1 million and there are 110,000 shares outstanding.

a. If the benchmark price-sales ratio is 3.0, 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 2.4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)