Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Z Space, Incorporated, is a new company and currently has negative earnings. The company s sales are $ 2 . 3 million and there are

Z Space, Incorporated, is a new company and currently has negative earnings. The companys sales are $2.3 million and there are 170,000 shares outstanding.
If the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
If the benchmark price-sales ratio for the company is 3.8, how much will you pay for the stock?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.

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

Handbook On Corporate Governance In Financial Institutions

Authors: Christine A. Mallin

1st Edition

1784711780, 978-1784711788

More Books

Students also viewed these Finance questions