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 $2,300,000 and there are 170,000 shares outstanding.

Requirement 1:

If the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock?

Requirement 2:

If the benchmark price-sales ratio for the company is 3.8, how much will you pay for the stock?

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

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

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