New company and currently has negative earnings

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TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,450,000 and there are 200,000 shares outstanding.

If the benchmark price–sales ratio for the company is 4.7, how much will you pay for the stock?

current stock price _____________

If the benchmark price–sales ratio for the company is 4.1, how much will you pay for the stock?

current stock price ______________

Reference no: EM131561060

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