Asked by Vaishnavi Surnis on Jun 11, 2024
Verified
A owns 80% of B and B owns 60% of C.If C pays a dividend and B distributes the amount received to its own shareholders,the allocation of the dividend will be:
A) parent 48%, NCI 52%.
B) parent 52%, NCI 48%.
C) parent 100%.
D) NCI 100%.
Allocation of the Dividend
The process of distributing a portion of a company's earnings, decided by the board of directors, to its shareholders in proportion to their shareholding.
Parent
A company that holds a controlling interest in one or more subsidiaries, often by owning more than half of their stock.
NCI
Non-Controlling Interest, which refers to the equity in a subsidiary not attributable, directly or indirectly, to a parent company.
- Determine the allocation and impact of dividends within a group with cross-shareholdings.
Verified Answer
Learning Objectives
- Determine the allocation and impact of dividends within a group with cross-shareholdings.
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