Benchmark price–sales ratio for the company

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Reference no: EM131313255

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,300,000 and there are 135,000 shares outstanding.

If the benchmark price–sales ratio for the company is 5.3, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

a. Current Stock Price: $_______

If the benchmark price–sales ratio for the company is 4.7, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. Current Stock Price: $_______

Reference no: EM131313255

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