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What price must a company typically pay to buy another company?
Wiki User
∙ 11y ago
the price will include some premium over the current market value of the target's equity.
Wiki User
∙ 11y ago
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Why is the goal of financial management to maximiize the current share price of the company's stock in other words why isn't the goal to maximize the future share price?
Maximizing the current share price is the same as maximizing the future share price at any future period. The value of a share of stock depends on all of the future cash flows of company. Another way to look at this is that, barring large cash payments to shareholders, the expected price of the stock must be higher in the future than it is today. Who would buy a stock for $100 today when the share price in one year is expected to be $80?
How do you purchase a portion of a company?
If the corporation is listed on the stock exchanges, then buying shares using a stock broker is the easiest way. If the company is private or closely held, then one must negotiate with the owners of the company and agree on a number of shares and a price.
The difference in marketing a company's product to organisations rather than consumers?
When a company markets to another business, they must include more technical and expert details. When they market to consumers, providing the features and benefits are sufficient.
Which is one of the requirements that a company must meet when it begins to sell shares?
The company must disclose details about its finances.
How do you check status of old insurance policy with occidental life insurance company of California?
Before an insurance company can sell insurance in a certain state, it must register with the State Dept of Insurance. If the company is sold, then it must notify the Dept of who it was sold to. If it just closes down, its policies were likely sold to another company, the Dept will have to be notified of that as well. Contact the CA Dept of Insurance and inquire there.
What is accounts receivables factoring?
Accounts receivable factoring is a transaction by which a business sells their invoices to another company at a discounted price. It must be taken into consideration that this transaction is not a loan.
What is the difference between sales price and purchase price?
Purchase price is what the employee time costs the company to provide the service. Hourly rate plus all costs to you for that employee.Sales price is what you charge the customer for that employee time.EX.Company X buy material 1001 from Company Y.SO I must maintain a Purchase contract of material 1001 of Company X, supplier is Company Y.Meanwhile, I have to maintain a Sale Price list of material 1001 of Company Y, customer is Company X.
What is a corporate credit score and how does it affect the stock price?
In order to invest in good credit score. You must look onto the security, and company that you are willing to trade within order to obtain a credit score of another business you must be willing to look into other peoples credit score, so you wont risk your own self and your company.
What do you call a company that owns another company?
A company that owns another is a Parent Company, while the one that is owned by another is a Subsidiary. The Subsidiary may be fully owned or partly owned. To qualify as a Subsidiary, the Parent must hold at least 25% of the shares of the Subsidiary.
What happens to price of stocks when a corporation reduces authorized amount of stocks?
I believe what you are referring to is when a corporation buys back it's own stock resulting in less authorized shares in the marketplace. This doesn't have a direct effect on a stocks price but can typically indirectly cause a stocks price to increase. The reason that it is not direct is that the company must spend it's own money to buy back the stock. This results in less shares and each shareholder now holds a larger stake in the company but the resulting company now either has less cash in it's reserves or has issued debt to pay for the stock. Indirectly this can help the price of the stock. The fact that a company is buying it's own stock back would indicate that the company feels it's own shares are a bargin at the current price. It also adds support to a stocks price in that if the price begins to fall due to market conditions the company can step in and buy shares to prevent or limit continued stock depreciation.
How much education must an astronomer have?
All the math and science he can get, typically through collegeplus another five years or so after that.
What are share prices when using stocks?
Share prices are also known as stock prices. It is the single price for a number of company stocks. To be qualified for NASDAQ, the stock price must be at $1.
Why is the goal of financial management to maximiize the current share price of the company's stock in other words why isn't the goal to maximize the future share price?
Maximizing the current share price is the same as maximizing the future share price at any future period. The value of a share of stock depends on all of the future cash flows of company. Another way to look at this is that, barring large cash payments to shareholders, the expected price of the stock must be higher in the future than it is today. Who would buy a stock for $100 today when the share price in one year is expected to be $80?
What price must a price ceiling be less than for it to result in a shortage?
It must be less than the equilibrium price.
How do you purchase a portion of a company?
If the corporation is listed on the stock exchanges, then buying shares using a stock broker is the easiest way. If the company is private or closely held, then one must negotiate with the owners of the company and agree on a number of shares and a price.
What does POA mean in an advertisement?
In the context of an advertisement, POA typically stands for "Price On Application." This means that the price of the product or service is not disclosed publicly and interested individuals should inquire directly to obtain the price information.
All elements of marketing mix must synchronise with the company's positioning.- explain?
The four elements of the marketing mix are price, promotion, product, and place. All of them must be geared toward the target market.
