Company A owns 40% of Company B Company B owns 30% of Company C Company C...
Homework Answers
| Company | A | B | C |
| 20% owned by C | 40% owned by A | 30% owned by B | |
| So, adjustment to reflect free float-- | 200*(1-20%)= | 200*(1-40%)= | 200*(1-30%)= |
| out of total market-cap of $ 200 mlns. | 160 | 120 | 140 |
| so,total adjusted market capitalisation is 160+120+140= 420 millions | ||
| or alternatively, | ||
| Total mkt. capitalisation-Total crossholdings | ||
| (200*3)-(200*(40%+30%+20%))= | ||
| 420 | ||
| millions | ||
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Company A owns 40% of Company B
Company B owns 30% of Company C
Company C...
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