Benchmark price-sales ratio for the company

Assignment Help Financial Management
Reference no: EM131315001

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,950,000 and there are 140,000 shares outstanding.

Requirement 1: If the benchmark price-sales ratio for the company is 4.9, how much will you pay for the stock?

Requirement 2: If the benchmark price-sales ratio for the company is 4.3, how much will you pay for the stock?

Reference no: EM131315001

Questions Cloud

Find the system undergoes an irreversible cycle : It is not in chemical equilibrium, however, because of chemical reactions and transport of matter between phases. Under these circumstances, the system undergoes an irreversible cycle
Maximum number of blueberry candles : The shop operates 365 days a year. Setup cost is $60 for blueberry candles, regardless of how many boxes of blueberry candles are produced, and holding cost is $24 per box per year. Which of the following is closest to the maximum number of blue..
Design mock-up of the organization program ui : Building on your initial user interface (UI) design mock-up of the organization's program UI, the interface now needs to present more information to the user
What is the purpose of recording documents : Describe the difference between a buyer taking title subject to the mortgage versus assuming the mortgage.- Explain the difference between the equity right of redemption and the statutory right of redemption.
Benchmark price-sales ratio for the company : TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,950,000 and there are 140,000 shares outstanding. If the benchmark price-sales ratio for the company is 4.9, how much will you pay for the stock?
Evaluate product you select based on four ps of marketing : Evaluate the product you select based on the Four Ps of marketing. How is the company using each of the Four Ps to market their line of dog treats?
Advantages to a home buyer of a graduated payment mortgage : What are the advantages to a home buyer of a graduated payment mortgage?-  What is the major constraint on lenders in setting new interest rates for an adjustable rate mortgage?
Global sourcing challenge-indian rugs and child labor : Read the case study: "IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)" and answer these questions:
Why cash flow is more important than sales in a business : Summarize the role of management as it relates to finance in a corporation. In your post, address the following: Indicate the various aspects of finance that management must understand. Describe why a manager needs to understand the characteristics a..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the component cost of each type of capital

The balance sheet that follows indicates the optimum capital structure for Nealon Inc. Flotation costs are (a) 3% of market value for a new bond issue, and (b) $1.00 per share for preferred stock.  Equity above $3M would be obtained from the sale of ..

  Assume the sale form action is annually based

Assume Enterprise Inc. Sells special widgets per week. They are able to sell 400 widgets per week. Assuming the carrying cost per unit is $2.00. What is the total carrying cost per week? Assume another company sells common widgets (and assume the sal..

  What is the current value of CARs equity and debt

CAR Inc. will be liquidated in one year. The value of CAR’s assets is currently $650 million, and next year it will be either $825 million or $400 million. Before shareholders can be paid next year, CAR will have to repay $500 million of debt. What i..

  Determinants of interest rate for individual securities

Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the rate on 3-year Treasury securities is 7.60 percent, and the 6-year Treasury rate is 7.70 percent. From discussions with your broker, you have determined ..

  Calculate debt-to-equity ratio

In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term l..

  The registrar of a university with a population

The registrar of a university with a population of N- 4,000 full-time studentsis asked by the president to conduct a survey to measure satisfaction with the quality of life on campus. The following table contains a breakdown of the 4,000 registered f..

  What is the change in price bond will experience in dollars

A 7.50 percent coupon bond with 13 years left to maturity is priced to offer a 8.2 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.8 percent. What is the change in price the bond will experience in dollars?

  What is the minimum bid per widget

A firm is considering bidding on a project to produce eight widgets per year for the next four years. In order to complete the project, the firm must lease facilities for $30,000 per year, purchase equipment that costs $100,000, as well as pay labour..

  Determine the present value of the insurance benefits

Determine the present value of the insurance benefits that could provide $40,000 over the next 15 years for the Sampson family.

  Degree of operating leverage

DEGREE OF OPERATING LEVERAGE Grant Grocers has annual sales of $1,000,000. The company’s fixed costs total $250,000, and its variable costs are 60% of sales. What is the company’s degree of operating leverage? If sales increased 20%, what would be th..

  Business ethics scenarios

A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht t..

  What is the present value of the following future amount

What is the present value of the following future amount? $340,589 to be received 15 years from now, discounted back to the present at 3 percent, compounded annually. Round to 2 decimals

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd