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 $1.35 million and there are 130,000 shares outstanding. If the

TwitterMe, Inc., is a new company and

currently has negative earnings. The company's sales are $1.35 million and

there are 130,000 shares outstanding. If the benchmark price-sales ratio is

4.8, what is your estimate of an appropriate stock price? What if the

price-sales ratio were 3.7?

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

Business Mathematics

Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller

12th Edition

0135109787, 9780135109786

More Books

Students also viewed these Finance questions

Question

Explain how fats may provide energy.

Answered: 1 week ago

Question

Debate the overexpansion of mental disorders attributed to the DSM.

Answered: 1 week ago