TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $1.3 million and there are 116,000 shares outstanding. a. If the benchmark price-sales ratio is 3.6, 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 3.0? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $1.3 million and there are 116,000 shares outstanding. a. If the benchmark price-sales ratio is 3.6, 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 3.0? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 15P
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