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Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.8 million and there are 146,000 shares outstanding. a.
Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.8 million and there are 146,000 shares outstanding. a. If the benchmark price-sales ratio is 6.6, what is your estimate of an appropriate stock price? (Do not round Intermedlate calculatlons and round your answer to 2 decimal places, 4.9., 32.16.) b. What if the price-sales ratio were 5.8? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) 2. Stock price at 3 price-sales of 8.6 b. Stock price at 2 priee-sales of 5.8 Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $12 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 11 percent, what is the current share price? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
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