Important characteristics of getting a high sales price

Assignment Help Financial Management

Reference no: EM13731348

One of the most important characteristics of getting a high sales price is high net revenue to working interest ratio. Why would a company looking to pursue an acquisition place high importance on this factor?

Reference no: EM13731348

Questions Cloud

What is the equipment after tax net salvage value : Analysis of an expansion project. Equipment originally cost 16 million which 75% has depreciated. Used equipment can be sold for 4.8 million and tax rate is 35%. What is the equipment after tax net salvage value?

Although a third party reserve report can be costly : Although a third party reserve report can be costly, it can benefit both buyer and seller. Please list an example of how each would benefit from the report, without hindering the sale.

What is the stocks current value per share : Thomas Brothers is expected to pay a $3.3 per share dividend at the end of the year (that is, D1 = $3.3). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the stock's curr..

Residual distribution model : New product expansion with 15 million investments in new machinery. Using current 30% debt to total assets ratio for capital structure to maintain dividend policy of annual distribution 25% of net income. The net income is 8 million. How much externa..

Important characteristics of getting a high sales price : One of the most important characteristics of getting a high sales price is high net revenue to working interest ratio. Why would a company looking to pursue an acquisition place high importance on this factor?

A low quality field may have a positive cash flow : A low quality field may have a positive cash flow, but still be classified as having a less desirable present value. What is a factor that contributes to this analysis?

That is what self-supporting growth rate is : AFN: company generates 2.0 million in sales during 2013 and its yearend total assets were 1.3 million. Also yearend 2013 current liabilities were 1.0 million consisting of 300.000 notes payable, 500,000 accounts payable and 200,000 accruals looking a..

What is the amount of the firms current assets : Killer Whale, Inc., has the following balance sheet statement items: total current liabilities of $889,551; net fixed and other assets of $1,518,050; total assets of $3,015,920; and long term debt of $830,963. What is the amount of the firm’s current..

Gas powered or electric powered forklift truck : Company must choose between a gas powered or electric powered forklift truck. Electric truck will cost more but less expensive to operate its price is $21,000 the gas powered is $17,960. Cost of capital applied to both at 13%. Life expectancy for bot..

User Account

All Pages