Ryan Company Owns 80% of Chase Company

question 106

Multiple Choice

Ryan Company owns 80% of Chase Company. The original balances presented for Ryan and Chase as of January 1, 2011, are as follows:

Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share.
What is the adjusted book value of Chase Company after the issuance of the shares?

• A) $608,000.
• B) $720,000.
• C) $680,000.
• D) $760,000.
• E) $400,000.

Identify the regulatory bodies and their roles in the securities industry in Canada.

Understand the concept of equity carve-outs and their impact on public stockholders.

Recognize the process and benefits of going public for companies.

Know the mechanisms and significance of using a shelf prospectus in securities issuance.

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