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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Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $2.7 million and there are 175,000 shares outstanding. a. If the benchmark price-sales ratio is 4.3, 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 3.6? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price if price-sales is 4.3 b. Stock price if price-sales is 3.6
Hackworth Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10. What is the estimated intrinsic value of Hackworth Co.’s stock per share? Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X. Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?
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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?