Cloud Stream Tech is a new software company with negative earnings. The company's annual sales are $3.6 million and there are 200,000 shares outstanding. If the benchmark price-sales ratio is 3.5, what is your estimate of an appropriate stock price?
Cloud Stream Tech is a new software company with negative earnings. The company's annual sales are $3.6 million and there are 200,000 shares outstanding. If the benchmark price-sales ratio is 3.5, what is your estimate of an appropriate stock price?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 4R
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Transcribed Image Text:Cloud Stream Tech is a new software
company with negative earnings. The
company's annual sales are $3.6 million
and there are 200,000 shares outstanding.
If the benchmark price-sales ratio is 3.5,
what is your estimate of an appropriate
stock price?
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