Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

World Wide Web Wares (4W, for short) is an online retailer of small kitchen appliances and utensils. The firm has been around for a few

image text in transcribed
image text in transcribed
World Wide Web Wares (4W, for short) is an online retailer of small kitchen appliances and utensils. The firm has been around for a few years and has created a nice market niche for itself. In fact, it actually turned a profit last year, albeit a fairly small one. After doing some basic research on the company, you've decided to take a closer look. You plan to use the price-to-sales ratio to value the stock, and you have collected P/S multiples on the following Internet retailer stocks:. Find the average P/S ratio for these three firms. Given that 4W is expected to generate $43 million in sales next year and will have 14 million shares of stock outstanding, use the average P/S ratio you computed above to put a value on 4W's stock. KLEBE The average P/S ratio for the 3 firms is (Round to two decimal places.) 3. age Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Company Amazing.com ReallyCooking.com Fixtures & Appliances Online Print P/S Multiples 4.9 4.1 4.1 - Done X

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

Commodity Trade And Finance

Authors: Michael Tamvakis

2nd Edition

041573245X, 978-0415732451

More Books

Students also viewed these Finance questions

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago

Question

5. Describe the relationship between history and identity.

Answered: 1 week ago