Capilano Corporation has just decided to purchase 30% of the outstanding common shares of its major supplier Langkwat Corporation.Give two reasons why Capilano Corporation may have made this investment.The reasons given cannot include: ? To earn greater dividend income on available excess cash than can be earned by leaving the cash in a typical bank account.? To earn a gain over the original purchase price on the eventual sale of the purchased shares.

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The Answer of Capilano Corporation has just decided to purchase 30% of the outstanding common shares of its major supplier Langkwat Corporation.Give two reasons why Capilano Corporation may have made this investment.The reasons given cannot include: ? To earn greater dividend income on available excess cash than can be earned by leaving the cash in a typical bank account.? To earn a gain over the original purchase price on the eventual sale of the purchased shares.

Capilano Corporation Has Just Decided to Purchase 30% of the Outstanding