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 ______________