All of the Following Are Examples of How a Parent

question 37

Multiple Choice

All of the following are examples of how a parent company may lose control over a subsidiary and discontinue future consolidation,except:

• A)The parent sells some of its interest in the subsidiary.
• B)The subsidiary issues additional common stock.
• C)The subsidiary comes under the control of the government or other regulator.
• D)The subsidiary issues a stock dividend or a stock split.

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Definitions:

Par Value

Par value is the nominal or face value of a bond, share, or other financial instrument, set at the time of issue.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to their present value.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly dividends are increasing over time.

Financial Loss

A decrease in monetary value, often related to business operations, investments, or unforeseen expenses.