TwitterMe, Inc., is a new company and currently has negative earnings. The companys sales are $1.45 million
Question:
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1.45 million and there are 130,000 shares outstanding. If the benchmark price-sales ratio is 3.9, what is your estimate of an appropriate stock price? What if the price sales ratio were 3.2?
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Step by Step Answer:
First we need to find the sales per share which is Sales per share SalesShares ...View the full answer
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Ashish Bhalla
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Related Book For 
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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