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%.

Question

Nirav Parmar · Accepted Answer

Final Answer : A, Explanation :  Since A owns 80% of B, A's share in the dividend paid by C through B will be 80% x 60% = 48%. The remaining 52% will be allocated to the Non-Controlling Interest (NCI) who owns the remaining 20% of B. Therefore, the dividend allocation will be parent 48%, NCI 52%.

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%.

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Learning Objectives

Related questions

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%.

Definitions

Learning Objectives

Learning Objectives

Related questions

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%.