Solved

A Inc Owns 80% of B's Outstanding Voting Shares

Question 3

Multiple Choice

A Inc. owns 80% of B's outstanding voting shares. Under which of the following scenarios would A's ownership percentage of B change?


A) B Inc. announces a 2-for-1 stock split to all its common shareholders.
B) B issues an additional 10,000 voting shares; A acquires 8,000 shares of the new issue.
C) B issues an additional 10,000 voting shares; A acquires 6,400 shares of the new issue.
D) B retires 20,000 voting share, and in doing so, buy back 16,000 shares from A.

Correct Answer:

verifed

Verified

Related Questions