We are trying to value Inactivision, Inc., a video game developer. Inactivision does not pay dividends. After some research, you feel that a PE ratio of 20 is appropriate for this company. Total earnings over the four most recent quarters combined are $2 per share. What is the most accurate price for this company based on such information?

8. Inactivision, Inc., in the above example, does not pay dividends and. A comparable company has a PS ratio of 15. Inactivision got a negative earnings this year. You find out that the total sales over the four most recent quarters combined are $1.5 per share. What is the most accurate price for this company based on such information?