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. if the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock? (do not round intermediate calculations and round your answer to 2 decimal places,

e. g., 32.16.) current stock price $ if the benchmark price-sales ratio for the company is 3.8, how much will you pay for the stock? (do not round intermediate calculations and round your answer to 2 decimal places,

e. g., 32.16.) current stock price $

Given:

company's sales are $2,300,000

170,000 shares outstanding.

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

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

Sales per share = Sales / Shares outstanding

Sales per share = 2,300,000 / 170,000

Sales per share = 13.529 or 13.53

Price per share with PS ratio

P = Benchmark PS ratio * Sales per share

P = 4.4 * 13.53

P = $59.53

P = 3.8 * 13.53

P = $51.41

If the PS ratio of the company is 4.4, I'll pay $59.53 per share.

If the PS ratio of the company is 3.8, I'll pay $51.41 per share.