Need answer the financial accounting question please answer do fast and step by step calculation TechStart Solutions is a new technologycompany with negative earnings. The company'sannual sales are $5.2 million and there are250,000 shares outstanding. If the benchmarkprice sales ratio is 4.5, what is your estimate ofan appropriate stock price?

Step 1: Define Price-Sales Ratio and Stock PriceThe price-sales ratio (P/S ratio) is calculated by…

Answered: TechStart Solutions is a new technology…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 38.5%, and the current dividend yield is 10.50%. Its beta is 1.37, the market risk premium is 16.50%, and the risk-free rate is 2.30%. a. Use the CAPM to estimate the firm's cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity % b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calculations. Enter your answer as a whole percent.) Cost of equity % c. Which of the two estimates is more reasonable?
Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 38.5%, and the current dividend yield is 10.50%. Its beta is 1.37, the market risk premium is 16.50%, and the risk-free rate is 2.30%. a. Use the CAPM to estimate the firm’s cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calculations. Enter your answer as a whole percent.)
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I need help on this question ASAP: A start-up technology company has projected earnings per share of $4.50. If the average technology industry P/E ratio is 30, what would the company's projected stock price be?
Can you show me how to get these answers please.
Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 36.5%, and the current dividend yield is 8.50%. Its beta is 1.33, the market risk premium is 14.50%, and the risk-free rate is 2.70%. a. Use the CAPM to estimate the firm's cost of equity. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. Now use the constant growth model to estimate the cost of equity. Note: Do not round intermediate calculations. Enter your answer as a whole percent. c. Which of the two estimates is more reasonable? a. Cost of equity % % c. Which of the two estimates is more reasonable? b. Cost of equity
Co Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 34.0%, and the current dividend yield is 6.00%. Its beta is 1.28, the market risk premium is 12.00%, and the risk-free rate is 3.20%. a. Use the CAPM to estimate the firm's cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity 12.00 % b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calculations. Enter your answer as a whole percent.) Cost of equity 14 % < Prev 4 of 4 Next re to search 立

•Suppose we are trying to value the company Inactivision, a video game developer that does not pay dividends and has negative earnings but it growing. If the appropriate industry price to sales ratio for this type of company is 20 and you predict sales to be $3 per share for the coming year, then the forecasted stock price for a year from now, or target price, is the following: Respuesta:
Can you answer this accounting question without use ai?
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Brinkley Resources stock has increased significantly over the last five years, selling now for $175 per share. Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $35 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value?
(a) A financial analyst would like to study the stock market in Hong Kong. It is believed that the stock market will become overvalue when one of the indicato Time left 1:5 price/earning (P/E) ratio is over 33.9. On this basis, he finds out 30 companies and records their P/E ratio as below: Round the data down to an integer (e.g., 29.7 will be 29) and then prepare a stem-and-leaf display for the rounded data. [Do not put space between digits (e.g., put 1123 instead of 1 1 2 3).] Stem Leaf 0 1 2 3 4 51.7 46.5 40.9 4.2 56.8 38.9 46.7 2.5 49.9 44.6 46.5 12.3 23.8 44.0 47.2 47.2 58.2 17.1 56.4 52.7 43.0 48.7 38.1 54.5 43.8 40.9 41.9 52.5 32.9 13.142.7 33.1 5

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TechStart Solutions is a new technology company with negative earnings. The company's annual sales are $5.2 million and there are 250,000 shares outstanding. If the benchmark price sales ratio is 4.5, what is your estimate of an appropriate stock price?