alleryStart learning →A control premium is 25 percent. Using MID = 1 - 1/(1+CP), what is the minority interest discount?
A25 percent
B20 percent
C16.7 percent
D33.3 percent
Answer & Solution
Correct answer: B. 20 percent
MID = 1 - 1/1.25 = 1 - 0.80 = 0.20, so the discount is 20 percent.
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