Which of the Following Requirements Must Be Met for a Redemption

question 34

Multiple Choice

Which of the following requirements must be met for a redemption to be treated as substantially disproportionate?

• A)The shareholder must own less than 50% of the outstanding stock (in terms of voting power)after the redemption.
• B)After the redemption, the shareholder must own less than 80% of his percentage ownership of voting stock prior to the redemption.
• C)After the redemption, the shareholder must own less than 80% of his percentage ownership of common stock (voting and nonvoting)prior to the redemption.
• D)All of the above must be met.

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Definitions:

Coefficient Of Determination

A measure that represents the proportion of variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Coefficient Of Correlation

A statistical measure that quantifies the degree to which two variables change in relation to each other, ranging from -1 to 1.

Regression Line

A line that best fits the data points in a scatter plot, showing the relationship between the independent and dependent variables.

Slope

In statistics, it typically refers to the rate at which one variable changes in relation to another in a linear regression model.