If the benchmark price-sales ratio for the company

Assignment Help Financial Management

Reference no: EM131055308

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,700,000 and there are 275,000 shares outstanding.

Requirement 1: 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. 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 4.7, 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: EM131055308

Questions Cloud

What is the expected NPV of the new project : A firm is considering a new project that has a cost of $1,000. Suppose, the CFO asked you to set up the decision tree to show its three most likely scenarios. The best case scenario happens with probability of 0.2, and produces three cash flows of $8..

Required return on stock-what is the current share price : Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.90, $17.90, $22.90, and $4.70. Afterwards, the company pledges to maintain a constant 6.00 percent growth rate in dividends, forever. Required: If the re..

Should she pursue the poison pill strategy : How should Dr. Bauer proceed? Provide reasons to support your answer. Should she offer her advice regarding the syndrome evidence? Why or why not?

Prepare the amortization schedule for the loan : Bill has $25,000 in an investment account earning 6 percent per year. Bill decides to purchase a new car with a sticker price of $25,000. The car dealer offers Bill either $2,000 cash back or 2% financing for 5 years. Calculate the monthly payment re..

If the benchmark price-sales ratio for the company : TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,700,000 and there are 275,000 shares outstanding. If the benchmark price-sales ratio for the company is 5.3, how much will you pay for the stock? If the..

The managing editor of well-known business journal : Beverly Sutton is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, wat she would really like to do is open a bookstore of her own. She would like to open her s..

Does monsanto maintain an ethical culture : Does Monsanto maintain an ethical culture that effectively responds to various stakeholdwes?

Do you think GFC could be repeated again : FIN200 Assignment - Discuss the possible causes of the financial crisis. Do you think GFC could be repeated again? Discuss.

User Account

All Pages