Asked by
Sukhdyal singh
on Dec 10, 2024
Verified
Ryan Company purchased 80% of Chase Company for $270,000 when Chase's book value was $300,000. Chase has 50,000 shares outstanding and currently has a book value of $400,000.Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share.What is the new percent ownership Ryan owns in Chase?
A) 80.0%.
B) 87.5%.
C) 90.0%.
D) 75.0%.
E) 82.5%.
Percent Ownership
The portion of equity interest that an investor holds in a company, often expressed as a percentage.
Shares Common Stock
Equity securities that represent ownership interest in a corporation, with rights to dividends and to vote on corporate matters.
- Gain insight into the operations and ramifications of share transactions and acquisitions on subsidiary governance and parent company equity interests.
Verified Answer
LG
Learning Objectives
- Gain insight into the operations and ramifications of share transactions and acquisitions on subsidiary governance and parent company equity interests.
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