All-Stores, Inc., is a holding company that has voting control over both General

Question

All-Stores, Inc., is a holding company that has voting control over both General Stores and Star Stores. All-Stores owns General Stores and Star Stores common stock valued at

$15 comma 00015,000

and

$12 comma 00012,000,

respectively. General's balance sheet lists

$ 130 comma 000$130,000

of total assets; Star has total assets of

$110 comma 000110,000.

All-Stores has total common stock equity of

$20 comma 00020,000.

a. What percentage of the total assets controlled by All-Stores does its common stock equity represent?

b.If a stockholder holds

$5 comma 0005,000

worth of All-Stores common stock equity, and this amount gives this stockholder voting control, what percentage of the total assets controlled does this stockholder's equity investment represent?

The percentage of the total assets controlled by All-Stores represented by its common stock equity is

nothing%.

(Round to two decimal places.)

Explanation / Answer

a)

total assets controllerd by all-stores

= All -stores common stock equity/(general stores total assets + star stores total assets)

= 20000/(130000 + 110000)

= 0.0833

= 8.33%

b)

total assets controlled by all-stores

= 5000/(130000 +110000)

= 0.0208

= 2.08%

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