A owns 85% of B, 90% of C, 95% of D and 94% of E.B owns 3% of C and 1% of D.In which subsidiary does A have the greatest direct and indirect ownership?

Question

Quizplus · Accepted Answer

To determine the greatest ownership by A, we need to calculate the total ownership A has in each subsidiary, including indirect ownership through other subsidiaries.

- A owns 85% of B
- A owns 90% of C, and B owns 3% of C, so A's total ownership in C is 90% + (85% x 3%) = 92.55%
- A owns 95% of D, and B owns 1% of D, so A's total ownership in D is 95% + (85% x 1%) = 95.25%
- A owns 94% of E, so no further calculation is needed.

Therefore, A has the greatest direct and indirect ownership in company D, with a total ownership of 95.25%.

A Owns 85% of B, 90% of C, 95% of D