Cradock Ltd has had a windfall gain of \($4\) million on a major foreign currency transaction. A director, representing a 40 percent share ownership in Cradock suggests the \($4\) million is used to repurchase the company’s shares. The chief financial officer, who is also a director, argues that Cradock retains the \($4\) million and reinvests it within the building. The two independent directors on Cradock's board seek an independent opinion before they make their decision.

Required 

Write a report to the directors of Cradock Limited. Analyse the main arguments, for and against a share buyback. In your report provide sufficient discussion for the directors to make a decision.