New company and currently has negative earnings

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Reference no: EM131050428

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,100,000 and there are 150,000 shares outstanding.

1. 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).)

2. If the benchmark price-sales ratio for the company is 4.1, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131050428

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