Calculate the percentage of ownership that Engro Corporation holds in Engro Foods (see Figure). Engro Corp's ownership in Engro Foods Lt. amounts to 8.49%, i.e. 58% of 50.5% of 29%. ________________________________________________________________________________________ Scenario-1: Assume that Engro Corp has 100% shareholding in Engro Polymer Ltd., and that it has effective control of each of the firms in the ownership pyramid, including Engro Foods. If Engro Corp steals one Rupee from Engro Foods and transfers to Engro Polymer, what will be its: i) net gain ii) loss? Hence, if Engro Corp steals one Rupee from Engro Foods, i) the net gain from doing so will amount to about 91.51 paisa (100 ps - 8.49 ps) and, ii) the costs will be 8.49 paisa. _____________________________________________________________________________________________ _____________________________________________________________________________________________ Scenario-2 (X % shareholding in Engro Polymer Ltd.): Assuming that Engro Corp has effective control of each of the firms in the ownership pyramid, including Engro Foods, what would be the percentage of shares that Engro Corp holds in Engro polymer Ltd that would just about not make it worthwhile for Engro corp to steal from Engro Foods Ltd.?
Calculate the percentage of ownership that Engro Corporation holds in Engro Foods (see Figure). Engro Corp's ownership in Engro Foods Lt. amounts to 8.49%, i.e. 58% of 50.5% of 29%. ________________________________________________________________________________________ Scenario-1: Assume that Engro Corp has 100% shareholding in Engro Polymer Ltd., and that it has effective control of each of the firms in the ownership pyramid, including Engro Foods. If Engro Corp steals one Rupee from Engro Foods and transfers to Engro Polymer, what will be its: i) net gain ii) loss? Hence, if Engro Corp steals one Rupee from Engro Foods, i) the net gain from doing so will amount to about 91.51 paisa (100 ps - 8.49 ps) and, ii) the costs will be 8.49 paisa. _____________________________________________________________________________________________ _____________________________________________________________________________________________ Scenario-2 (X % shareholding in Engro Polymer Ltd.): Assuming that Engro Corp has effective control of each of the firms in the ownership pyramid, including Engro Foods, what would be the percentage of shares that Engro Corp holds in Engro polymer Ltd that would just about not make it worthwhile for Engro corp to steal from Engro Foods Ltd.?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
- Calculate the percentage of ownership that Engro Corporation holds in Engro Foods (see Figure).
Engro Corp's ownership in Engro Foods Lt. amounts to 8.49%, i.e. 58% of 50.5% of 29%.
________________________________________________________________________________________
- Scenario-1: Assume that Engro Corp has 100% shareholding in Engro Polymer Ltd., and that it has effective control of each of the firms in the ownership pyramid, including Engro Foods. If Engro Corp steals one Rupee from Engro Foods and transfers to Engro Polymer, what will be its: i) net gain ii) loss?
Hence, if Engro Corp steals one Rupee from Engro Foods, i) the net gain from doing so will amount to about 91.51 paisa (100 ps - 8.49 ps) and, ii) the costs will be 8.49 paisa.
_____________________________________________________________________________________________
_____________________________________________________________________________________________
- Scenario-2 (X % shareholding in Engro Polymer Ltd.): Assuming that Engro Corp has effective control of each of the firms in the ownership pyramid, including Engro Foods, what would be the percentage of shares that Engro Corp holds in Engro polymer Ltd that would just about not make it worthwhile for Engro corp to steal from Engro Foods Ltd.?
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Transcribed Image Text:Engro
58%
X%
Engro Pesticides Ltd
Engro Polymer Ltd
50.5%
Engro fertilizer
29%
Engro Foods
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