Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.6 million and there are 142,000 shares outstanding. a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price at a price-sales of 6.2 b. Stock price at a price-sales of 5.5

Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.6 million and there are 142,000 shares outstanding. a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price at a price-sales of 6.2 b. Stock price at a price-sales of 5.5

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 8PROB

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