Estimate of an appropriate stock price

Assignment Help Finance Basics
Reference no: EM132473986

TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $2.1 million and there are 130,000 shares outstanding.

A) If the benchmark price-sales ratio is 4.3, what is your estimate of an appropriate stock price?

B) What if the price-sales ratio were 3.6?

Reference no: EM132473986

Questions Cloud

How much commission will the executive headhunter earn : If the headhunter provides 12 executives per year, who have an average basic salary of £150,000, how much commission will the executive headhunter earn
Calculate a fair price for bond today : A $1000-face-value bond issued by Dire Wolf Co. currently matures in 18 years, pays annual coupon payments at a coupon rate of 9%, and has a required return
What is the amount of net income or net loss : The end-of-period spreadsheet, In preparing the income statement from the work sheet, what is the amount of net income or net loss?
What is your opinion of the foregoing accounting practice : The balancing amount is an increase in additional paid-in capital of the subsidiary. What is your opinion of the foregoing accounting practice? Explain
Estimate of an appropriate stock price : A) If the benchmark price-sales ratio is 4.3, what is your estimate of an appropriate stock price? B) What if the price-sales ratio were 3.6?
Find the accumulation of the annuity at the end of 12 years : Find the accumulation of the annuity at the end of 12 years.
What is the yield to maturity of bond b : Would yield to maturity be the most relevant measure for Bond B? If not, what yield measure would be more relevant for Bond B?
Prepare journal entries to record the purchase of the asset : Prepare journal entries to record the purchase of the asset on July 1, 2015, and to record depreciation expense on December 31, 2015
Problem - Repurchase Agreement : Zagat Ltd. enters into an agreement on March 1, 2019, to sell Werner Metal aluminum ingots. Prepare Zagat's journal entry necessary on March 1, 2019

Reviews

Write a Review

Finance Basics Questions & Answers

  Mentoring a new management trainee

Artemus Gordon is mentoring a new management trainee. The new trainee is unfamiliar with the balance scorecard and its use in the production department

  How you would take advantage of this opportunity

Suppose you observe that a three-year, default-free security with an annual coupon rate of 10% and a face value of $1000 has a price today of $1183.50. Is there an arbitrage opportunity? If so,show specifically how you would take advantage of this op..

  What is the total liabilities

Indicate whether each of the following transactions increases ( +), decreases ( -), or has no effect (NE) on total assets, total liabilities.

  Portfolio and the optimal complete portfolio

Can someone explain te difference between the optimal risky portfolio and the optimal complete portfolio?

  Calculate the amount of the total tax liability

Meese Paper Distributors, Inc. has before-tax earnings of $1,900,000. Calculate the amount of the total tax liability.

  Estimate the the bisco stock increased or not

An investment bank is offering a security linked to the price 2 years from today of Bisco stock, which is currently at $3 per share.

  Determine average annual compound rate of return

The All-State Mutual Fund has the following 5 year record of performance: Determine this no-load fund's five year (2006-2010) average annual compound rate of return.

  What was the total nominal rate of return

Calculating Returns. Suppose you bought a bond with an annual coupon rate of 6.5 percent one year ago for $1,032. The bond sells for $1,020 today.

  Promote the economic growth in greece

1. What are the various factors that promote the economic growth in Greece 2. Breifly describe the legal process of determining whether a representation is false or misleading

  How much will you have at the end of the 30 years

If the investment plan pays you 11 percent per year for the first 15 years and 7 percent per year for the next 15 years, how much will you have at the end of the 30 years?

  What annual rate of return has investment generated

What annual rate of return has your investment generated? Assume all cash flows are received at the end of each year and no terminal value.

  Problem related to purchasing the stock

Acme Corp.'s common shares are now priced at $22.50 per share. An investor who purchased the stock 12 months ago has received $0.32 per share in dividends.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd