A controlling interest is defined as an investor acquiring more than what share of a company's stock?
A10%
B25%
C50%
D75%
Answer & Solution
Correct answer: C. 50%
Owning more than 50% of the stock gives the prerogatives of control, such as electing directors and setting strategy.
Keep practising Business Valuation
Browse all Business Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
How is marketability of a business interest defined?Which level of value is lowest for equity interests in a private firm?A buyer pays a 100% control premium over the minority price. What is the implied minority A private firm valued using listed-peer multiples is usually adjusted for what?In the guideline public company method, the comparison with listed firms is expressed as wWhy is the asset-based approach weak for a going concern?Why do some critics doubt the objectivity of the WACC method?A WACC-based discount rate is applied to which cash flows?