GFR Group Is the Parent Company of Many Related Businesses

question 24

Multiple Choice

GFR Group is the parent company of many related businesses under its banner.Each share of the parent company is quoted at $220.However, if this had to be assessed by adding the stock prices of each of its strategic business units, the value would only be $200 per share.In this scenario, what has GFR Group created?

• A) Capital liquidity
• B) Diversification premium
• C) Diversification discount
• D) Demand-pull inflation

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Definitions:

Ownership Interest

A stake or share in an asset or entity, giving the holder a claim to a portion of its value or profits.

Cash Received

Income or revenue received in the form of cash, including physical currency, checks, and digital transfers.

Corporate AMT

The Alternative Minimum Tax for corporations, designed to ensure that profitable companies pay at least a minimum amount of tax.

Average Annual Gross Receipts

The average amount of money received by a business before any deductions over a specified period, typically 3 to 5 years.