Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Blitz Corp had total sales of $2,650,000 last year and has 97,000 shares of stock outstanding
Blitz Corp had total sales of $2,650,000 last year and has 97,000 shares of stock outstanding. The benchmark PS is 1.42 times. What stock price would you consider appropriate? Multiple Choice $19.24 0 $36.21 $31.04 O $38.79 $34.91
We are given the following information
Sales = $2,650,000
Shares outstanding =97,000
PS Ratio = 1.42
1) Calculate Sales/ shares = Sales/ shares
Sales/ share = 2650000/ 97000
Sales/ share = $27.32
2) Current stock price = sales/ share * PS ratio
Current stock price = $27.32 * 1.42
Current stock price = $38.79
Hence the correct answer is OPTION D: $38.79
