A Plc Owns 85% of the Issued Capital of B

question 44

Multiple Choice

A Plc owns 85% of the issued capital of B Plc and B Plc owns 95% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

• A)23.5%
• B)10.5%
• C)19.25%
• D)15%

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Definitions:

Annuity

A financial instrument designed to distribute a steady series of disbursements to a person, commonly utilized as a source of income during retirement.

Amortize

To amortize is to gradually reduce or write off the cost or value of an intangible asset through systematic charges to income over its estimated useful life.

Compounded Monthly

A method of calculating interest where the interest earned or paid is added to the principal so that the next interest calculation includes prior interest.

End of Year Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.