Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $1.1 million and there are 112,000 shares outstanding. If the

image text in transcribed

TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $1.1 million and there are 112,000 shares outstanding. If the benchmark price-sales ratio is 3.2, what is your estimate of an appropriate stock price? (Do not round intermedliate calculations and round your answer to 2 cdecimal places, e.g., 32.16.) Stock price What if the price-sales ratio were 2.7? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Stock price

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

Step: 3

blur-text-image

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

Introduces Quantitative Finance

Authors: Paul Wilmott

2nd edition

470319585, 470319581, 978-0470319581

More Books

Students also viewed these Finance questions