Blasco International has sales of $389,700 and costs of $413,210.The company has 120,000 shares outstanding.What is the price-sales ratio if the stock has a book value of $19.20 per share and a market value per share of $8.60?

Question

Quizplus · Accepted Answer

The price-sales ratio is calculated by dividing the market value per share by the sales per share. The sales per share is calculated by dividing the sales by the number of shares outstanding. The market value per share is given as $8.60. The sales per share is calculated as $389,700 / 120,000 = $3.25. Therefore, the price-sales ratio is $8.60 / $3.25 = 2.65.

Blasco International Has Sales of $389,700 and Costs of $413,210