What is your estimate of an appropriate stock price for this financial accounting question? TwitterMe Inc. is a new company and currently hasnegative earnings. The company's sales are $1 millionand there are 110,000 shares outstanding. If thebenchmark price-sales ratio is 3, what is your estimateof an appropriate stock price?

Step 1: Define Price-Sales RatioPrice-sales ratio is the ratio of a stock's price per share to its…

Answered: TwitterMe Inc. is a new company and…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

See similar textbooks

Similar questions

Brielle financial services reports solve this question?
Please give me answer
A company has earnings of $3.18 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? Please use a HP 10bii+ Financial Calculator
What is likely to be the price of the stock on these financial accounting question?
PQR Co. has earnings of $3.13 per share. The benchmark PE for company is 13. What stock price (to two decimals) would you consider appropriate?
What is the stock price? For this accounting question
Need answer
I need answer
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?
A publicly-traded company that manufactures medical supplies wishes to evaluate its overall performance on the market compared to its competitors. Their beginning stock price for the year was $3.78 per share. Their ending stock price was 5.48 per share and the average price per share was 4.63. They paid 1.30 in dividends to each share with a growth rate of 5%. What is their total shareholder return rate?
Only typing ....
Give me help

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial Accounting

Accounting

ISBN:

9781305088436

Author:

Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial Accounting

Accounting

ISBN:

9781305088436

Author:

Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

TwitterMe Inc. is a new company and currently has negative earnings. The company's sales are $1 million and there are 110,000 shares outstanding. If the benchmark price-sales ratio is 3, what is your estimate of an appropriate stock price?