Asked by
mackenzie griffith
on Dec 10, 2024
Verified
Ryan Company purchased 80% of Chase Company for $240,000 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 reacquired 8,000 shares of its common stock from outsiders at $10 per share.What is Ryan's percent ownership in Chase after the acquisition of the treasury shares (rounded) ?
A) 80%.
B) 95%.
C) 64%.
D) 76%.
E) 69%.
Treasury Shares
Stocks that the original issuing company repurchased, subsequently decreasing the quantity of available shares in the market.
Percent Ownership
The percentage of an entity or asset owned by an investor or company, often determining the level of control or influence.
- Familiarize oneself with the structure and consequences of share transactions and acquisitions on the oversight of subsidiaries and investment strategies of the parent company.
Verified Answer
EC
Learning Objectives
- Familiarize oneself with the structure and consequences of share transactions and acquisitions on the oversight of subsidiaries and investment strategies of the parent company.
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