Reference no: EM132213318
Question: You are the financial director of Company ABC Ltd, a company listed on the JSE. You have been tasked with investigating the viability of a takeover of a company listed on the Alt X exchange.
Required: Select a company listed on the Alt X exchange. The company can be from any industry and needs to have recent and available financial results (not later than 2017).
Prepare a memo for the board of directors that covers the following:
1. Perform a ratio analysis of the target company (the company listed on the Alt X exchange). You must cover the following in your answer
- The analysis must cover all four categories of ratios, as listed in your CIMA textbooks.
- Two ratios per category are required.
- The analysis should include the prior year and benchmark comparatives. The comparative company should be selected from the JSE.
- Provide reasons why a specific comparative company was chosen.
- The analysis should include a discussion around the working capital strategy of the company.