Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-02-05
Length: 27 pages
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Abstract
Jeffrey Marshall, president and chief executive of Marshall Steel Limited knew he had to make a final decision about an offer to acquire control of Drummond McCall Inc, a firm about four times the size of Marshall. The offer price had not yet been determined. Marshall knew that with prime interest rates at 21%, the additional financial cost and risk from such a large loan were significant. He had to make up his own mind on whether to go forward with an offer, and if so, at what price.
About
Abstract
Jeffrey Marshall, president and chief executive of Marshall Steel Limited knew he had to make a final decision about an offer to acquire control of Drummond McCall Inc, a firm about four times the size of Marshall. The offer price had not yet been determined. Marshall knew that with prime interest rates at 21%, the additional financial cost and risk from such a large loan were significant. He had to make up his own mind on whether to go forward with an offer, and if so, at what price.