Equinox Bioengineering began operations in January of 2015. In its first year of operation, sales were $85 million and the net loss was $(5.1 million)
Free cash flow was $(300,000). Equinox has 10 million shares outstanding. If you think the price to sales ratio for this company should be 1 or less, what is the most you should pay per share.
A) $85.00
B) $8.50
C) $51.00
D) Such a stock would have no value at all.
Answer: B
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