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 $1.7 million and there are 145,000 shares outstanding. a.

image text in transcribed
Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $1.7 million and there are 145,000 shares outstanding. a. If the benchmark price-sales ratio for the company is 5.7, 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. b. If the benchmark price-sales ratio for the company is 5.1, 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

CFP Board Financial Planning Competency Handbook

Authors: CFP Board

2nd Edition

1119094968, 978-1119094968

More Books

Students also viewed these Finance questions

Question

What is the role of the UK Financial Reporting Council?

Answered: 1 week ago