Question

Derk owns 250 shares of stock in Rose Corporation. The remaining 750 shares of Rose are owned as follows: 150 by Derk’s daughter, 200 by Derk’s aunt, and 400 by a partnership in which Derk has an 80% interest. Determine the number of shares Derk owns (directly and indirectly) in Rose Corporation.

Answer 1

Answer:

720 shares

Explanation:

Given that,

Derk owns = 250 shares of stock in Rose Corporation

750 shares of Rose are owned as follows:

Derk’s daughter owns = 150

Derk’s aunt = 200

Shares in the partnership holding:

= 400 shares × Interest

= 400 shares × 80%

= 320 shares

Therefore,

Number of shares Derk owns in Rose Corporation:

= Own shares + Daughter's shares + Shares in the partnership holding

= 250 + 150 + 320

= 720