Currently has negative earnings-benchmark price-sales ratio

Assignment Help Financial Management
Reference no: EM131014269

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,200,000 and there are 155,000 shares outstanding. Requirement 1: If the benchmark price-sales ratio for the company is 4.6, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price $ Requirement 2: If the benchmark price-sales ratio for the company is 4, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price $

Reference no: EM131014269

Questions Cloud

Why is milk sold in rectangular containers : Discuss the economics of Franks question - Why is milk sold in rectangular containers, while soft drinks are sold in round one
Corporate tax rate-depreciation and amortization expense : Trevi Corporation recently reported an EBITDA of $32,000 and $9,700 of net income. The company has $6,600 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense?
Sketch a qualitatively accurate picture of the graph : Sketch a qualitatively accurate picture of the graph. Find the intervals where f(x) is concave up and where it is concave down.
Does it appear that growth was faster in the treated plots : The researchers used a matched pairs t test to see if the data give good evidence of faster growth in the treated plots. State hypotheses, carry out the median increase in heart rate and apply the Wilcoxon signed rank test. What do you conclude?
Currently has negative earnings-benchmark price-sales ratio : TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,200,000 and there are 155,000 shares outstanding. If the benchmark price-sales ratio for the company is 4.6, how much will you pay for the stock? If the..
Challenges of posting us employees to overseas locations : Consider the challenges of posting U.S. employees to overseas locations. You will develop a 25 - 30 slide presentation to make recommendations on the HR-related challenges.
What are the critical issues to be addressed : How should a company monitor implementation to help ensure successful implementation? What use(s) should be made of monitoring results?
What is the npv for an investment with an inital outlay : What is the NPV for an investment with an inital outlay now of $488, and expected cash inflows of $190, $296 and $338 at the end of the years one through three, respectively, at a discount rate of 9.8% ?
Write a reading responses for david trend : Write a "Reading Responses," for David Trend's "But Can We Understand It? from The Myth of Media Violence. Your response is a 3-paged (minimum), typed (double-spaced) response to the assigned reading, according to the following format: Your Name & Da..

Reviews

Write a Review

Financial Management Questions & Answers

  Define the term self-supporting growth rate

Define the term self-supporting growth rate. What is hatfield's self-supporting growth rate? Would the self-supporting growth rate be affected by a change into the capital intensity ratio or the other factors mentioned in the previous question?

  Gap analysis and benchmarking for anthonys orchard hi sir

hi sir madam ltbrgt ltbrgtcan you please check the attached assignment and let me know about it. looking forward to

  Compute anticipated return after financing costs

Assume that atlas sporting goods inc, has $840in assets. if it goes with a low liquidity plan for the assets if it goes with a low liquidity plan for the assets it can earn a return of 15 percent but with a high liquidity plan the return will be 12 p..

  Estimate the value of the stock

Burklin, Inc., has earnings of $18.6 million and is projected to grow at a constant rate of 4 percent forever because of the benefits gained from the learning curve. Currently, all earnings are paid out as dividends. Estimate the value of the stock

  Liquidation sale

Mathias has been the sole proprietor of a clothing store for many years. He intends to retire after holding a "liquidation sale". He wants to avoid ordinary income from the sale of the business inventory, so he shuts down the store for one month and ..

  Same computation for stockholders equity-long-term debt

Compute the $ change in “Total Assets” over the last two years. Do the same computation for “Stockholders’ Equity” Do the same computation for “Long-Term Debt”. In a brief paragraph, describe the change in long-term obligations (debt) that has taken ..

  Included in the initial costs for net working capital

Boyes Beach Wear is adding a new product to its sales lineup. Initially, the firm will stock $29,000 of inventory, which will be purchased on 30-days credit from its supplier. The firm will also invest $23,000 in accounts receivable and $87,000 in eq..

  What is the before tax cost of debt

A firm has 20 year $5 million of debt which was acquired 2 years ago and is currently selling at 115% of par value. The debt has a coupon rate of 7% and the current tax rate is 35%. What is the before tax cost of debt? A. 7.00% B. 5.72% C. 5.65% D. 3..

  Starting again with the conditions in part a

Starting again with the conditions in part a, what is capital increases by 5% so that it is now 420. By how much does output increase?

  What''s the name for the method of communications

What's the name for the method of communications used by stock traders frantically running around a trading floor and using hand signals?

  Which is a restrictive covenant

Which of the following is a restrictive covenant?

  New firm in rapidly growing industry

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its..

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