Problem 7-14 Stock Valuation and PS Ratio [LO 2] Z Space, Incorporated, is a new...
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Problem 7-14 Stock Valuation and PS Ratio [LO 2] Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $1.5 million and there are 135,000 shares outstanding. a. If the benchmark price-sales ratio for the company is 5.5, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the benchmark price-sales ratio for the company is 4.9, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16
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