Equinox Bioengineering Began Operations in January of 2015

question 24

Multiple Choice

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.

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