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Carol Morris wants to own a majority of the shares of the city’s large

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Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

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New post 27 Oct 2018, 07:18
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E

Difficulty:

  15% (low)

Question Stats:

81% (01:25) correct 19% (01:26) wrong based on 74 sessions

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Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.

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Re: Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

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New post 27 Oct 2018, 07:30
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Akela wrote:
Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.


A strengthen question

It boils down to the issue: Will Morris own the majority of shares given that Azedcorp refused to sell? We need something that provides us a yes answer.

B and E are contenders. But for us to eliminate B we must keep in mind that maybe Azedcorp wants more than what morris had offered?

E gives a more justified reason that Azedcorp has no other option, it will be forced to liquidate whatever assets it has including the shares.

Answer choice E

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Re: Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

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New post 27 Oct 2018, 08:09
Akela wrote:
Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.


Acquisition of all the shares of The Daily held by Azedcorp is the only objective of Morris , and we have to find a solution how that can be achieved !!!

(A) Irrelevant
(B) True but it has been stated that Azedcorp has refused to sell its shares , we are not sure if Azedcorp will be ready to sell the shares at a premium if Azedcorp speculates a rise in share price of the daily more than the premium.
(C) Might be true, but it has been stated that Azedcorp has refused to sell its stake in the daily so it doesn't matter whether there is any more buyer / not.
(D) Morris is the second largest stake holder, what next ? This doesn't guarantee that it can acquire a part of Azedcorp's stake.
(E) If Azedcorp becomes financially weak and is forced to offload its holding then Morris can acquire the shares , then Morris can acquire those/part of those to become a majority stakeholder of the daily.

Answer must be (E)
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Re: Carol Morris wants to own a majority of the shares of the city’s large &nbs [#permalink] 27 Oct 2018, 08:09
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Carol Morris wants to own a majority of the shares of the city’s large

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