A Inc Owns 80% of B's Outstanding Voting Shares

question 3

Multiple Choice

A Inc. owns 80% of B's outstanding voting shares. Under which of the following scenarios would A's ownership percentage of B change?

• A)B Inc. announces a 2-for-1 stock split to all its common shareholders.
• B)B issues an additional 10,000 voting shares; A acquires 8,000 shares of the new issue.
• C) B issues an additional 10,000 voting shares; A acquires 6,400 shares of the new issue.
• D) B retires 20,000 voting share, and in doing so, buy back 16,000 shares from A.

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