MGT224H5 Lecture : Case MGT224
Document Summary
Xyz is a private company which operates in 3 divisions: clothing and other apparel, The company has been in operation for 10 years over which it has had varying levels of profitability. The company is managed and partly owned by justin chang who owns 85% of the shares while sam oht owns 15% of the shares. Users: justin chang: want to gain 100% ownership by year end and so will want low to mediocre net income so that he can purchase back shares at lower price. Sam oht: wants clears and realistic statements so he can decide if he wants to further invest in the company and if he wants to buy 80% of shares in case justin doesn"t exercise his right. Potential buyer for flag division: potential buyers will want realistic and accurate financial statements so that they can decide if they want to make the purchase or not of the flags division.
