Twitterme inc is a new company and currently has negative, Financial Management

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Twitterme inc is a new company and currently has negative

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1.5 million and there are 120,000 shares outstanding. If the benchmark price–sales ratio is 4, what is your estimate of an appropriate stock price

a) If the benchmark price–sales ratio is 4, what is your estimate of an appropriate stock price

b) What if the price–sales ratio were 3.4? Stock price

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Financial Management: Twitterme inc is a new company and currently has negative

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