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Stock valuation and ps ratio

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Reference no: EM131319248

Stock Valuation and PS Ratio

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,400,000 and there are 190,000 shares outstanding.

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 and round your answer to 2 decimal places, e.g., 32.16.)

Current stock price $_____________

If the benchmark price–sales ratio for the company is 4, 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.)

Current stock price $____________

Reference no: EM131319248

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