Crickey Co, a company quoted on the London Stock Exchange, has cash balances of 23 million which
Question:
Crickey Co, a company quoted on the London Stock Exchange, has cash balances of £23 million which are currently invested in short-term money market deposits. The cash is intended to be used primarily for strategic acquisitions, and the company has formed an acquisition committee with a remit to identify possible acquisition targets. The committee has suggested the purchase of Mallard Co, a company in a different industry that is quoted on the stock exchange. Although Mallard is quoted, approximately 50% of its shares are still owned by three directors. These directors have stated that they might be prepared to recommend the sale of Mallard, but they consider that its shares are worth £22 million in total.
Essentials of Statistics for the Behavioral Sciences
ISBN: 978-1285056340
8th Edition
Authors: Frederick J Gravetter, Larry B. Wallnau