Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.6 million and there are 142,000 shares outstanding. a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price at a price-sales of 6.2 b. Stock price at a price-sales of 5.5
Problem 8-13 Stock Valuation and PS [LO2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.6 million and there are 142,000 shares outstanding. a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price at a price-sales of 6.2 b. Stock price at a price-sales of 5.5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 8-13 Stock Valuation and PS [LO2]
Z Space, Incorporated, is a new company and currently has negative earnings. The
company's sales are $2.6 million and there are 142,000 shares outstanding.
a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
a. Stock price at a price-sales of 6.2
b. Stock price at a price-sales of 5.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F589fed26-939c-4894-8e7e-b6110e941b31%2F3bd9ddac-5b3d-44db-becb-ee85a9a557aa%2F2e2onla_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 8-13 Stock Valuation and PS [LO2]
Z Space, Incorporated, is a new company and currently has negative earnings. The
company's sales are $2.6 million and there are 142,000 shares outstanding.
a. If the benchmark price-sales ratio is 6.2, what is your estimate of an appropriate stock
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. What if the price-sales ratio were 5.5? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
a. Stock price at a price-sales of 6.2
b. Stock price at a price-sales of 5.5
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