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

The answer is 720 shares

Step-by-step explanation:

Derk directly own 250 shares

His Indirect ownership is from the partnership and from his daughter's own.

His daughter owns 150 shares

And from the partnership, he owns:

80% of 400 shares

0.8 x 400 = 320 shares

Therefore, the total number of shares Derk owns (directly and indirectly) in Rose Corporation is

250 + 150 + 320

=720 shares