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 $1.4 million and there are 118,000 shares outstanding. a. If

image text in transcribed
TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $1.4 million and there are 118,000 shares outstanding. a. If the benchmark price-sales ratio is 3.8, 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.) What if the price-sales ratio were 3.2? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b. a. Stock price at a price-sales of 3.8TIRTIT b. Stock price at a price-sales of 3.2

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

ISE Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

8th International Edition

1265561435, 9781265561437

More Books

Students also viewed these Finance questions

Question

Definition 3 . 2 . A set S is uncountable if [ continue . . . ] .

Answered: 1 week ago