XYZ Buys a 24 Per Cent Share in ABC for $80

question 26

Multiple Choice

XYZ buys a 24 per cent share in ABC for $80 million. ABC's total net profit is $50 million and it pays $4 million in dividends to XYZ. Using the equity method, the value of the investment in ABC would be recorded at year-end as:

• A) $80 million.
• B) $88 million.
• C) $92 million.
• D) $19 million.

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Definitions:

Team Building

Activities and exercises designed to enhance social relations and define roles within teams, often involving collaborative tasks to improve team performance and cohesion.

Cultural Change

The modification of a society's cultural patterns, including norms, values, customs, and artifacts, often resulting from factors like technology, environment, and social dynamics.

Survey Feedback

A method used in organizational development where feedback from a survey is used to guide changes and improvements.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.