Sun and Moon Corporations Each Have Only One Class of Stock

question 94

Essay

Sun and Moon Corporations each have only one class of stock outstanding. Their stock ownership is shown below. $$\begin{array} { | c | c | c | } \hline \text { Shareholder } & \text { Sun Corporation } & \text { Moon Corporation } \\\hline \text { Arthur } & 50 \% & 60 \% \\\text { Brenda } & 20 \% & 40 \% \\\text { Charles } & 30 \% & 0 \% \\\text { David } & 0 \% & 0 \% \\\hline\end{array}$$ Which of the four stock ownership changes that are illustrated is the minimum change that is neede and Moon Corporations are to be brother- sister corporations under the 50%- 80% requirements? (Assume the two corporations are equally valued.)
A) No stock ownership change is required.
B) Arthur must acquire an additional 30% of Moon Corporation.
C) Charles must acquire an additional 10% of Moon Corporation.
D) Charles must acquire an additional 5% of Sun Corporation.

• A) No stock ownership change is required.
• B) Arthur must acquire an additional 30% of Moon Corporation.
• C) Charles must acquire an additional 10% of Moon Corporation.
• D) Charles must acquire an additional 5% of Sun Corporation.

Associate the appropriateness of different variability measures with different types of data.

Understand the mathematical representations and formulas associated with measures of variability.

Distinguish between various types of variability measures in terms of ease of calculation and information they provide.

Understand the concept of standard deviation and variance in data dispersion.