The 100 shares of Yankee Corporation were owned as shown below: $$\begin{array} { l c }
\text { Shareholder } & \text { Shares } \
\text { George } & 10 \
\text { Bucky } & 20 \
\text { G\&D Partnership } & 40 \
\text { Stein Corporation } & 30
\end{array}$$ George and Bucky are unrelated.George is a 50 percent partner in the G&D partnership.In addition, George owns 70 percent of Stein Corporation.Stein Corporation plans to redeem some of its stock in Yankee.What is Stein Corporation's direct and indirect interest in Yankee before the redemption?

Question

The 100 shares of Yankee Corporation were owned as shown below: $$\begin{array} { l c } 
\text { Shareholder } & \text { Shares } \
\text { George } & 10 \
\text { Bucky } & 20 \
\text { G\&D Partnership } & 40 \
\text { Stein Corporation } & 30
\end{array}$$ George and Bucky are unrelated.George is a 50 percent partner in the G&D partnership.In addition, George owns 70 percent of Stein Corporation.Stein Corporation plans to redeem some of its stock in Yankee.What is Stein Corporation's direct and indirect interest in Yankee before the redemption?

Quizplus · Accepted Answer

Stein Corporation directly owns 30 shares. Indirectly, through George's 70% ownership, it has an interest in 7 shares (70% of George's 10 shares) and 28 shares (70% of G&D's 40 shares). Total interest = 30 + 7 + 28 = 65 shares, which is 65% of Yankee Corporation.

The 100 Shares of Yankee Corporation Were Owned as Shown