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gmatwriter: Junior | Next Rank: 30 Posts; Posts: 11; Joined: Tue May 26, 2009 7:24 pm

XYZ Corporation

by gmatwriter » Mon Mar 22, 2010 4:05 pm

Please Explain:

Company A owns 40% of the stock in the XYZ corporation. Company B owns $15000 shares. Company C owns all the shares not owned by companies A or B. How many shares of stock does company A own if company C has 25% more shares than company A?

a.45,000
b.50,000
c.60,000
d.75,000
e.90,000

c

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Source: Beat The GMAT — Problem Solving | Mon Mar 22, 2010 4:05 pm

kstv: Legendary Member; Posts: 610; Joined: Fri Jan 15, 2010 12:33 am; Thanked: 47 times; Followed by:2 members

by kstv » Mon Mar 22, 2010 4:36 pm

A owns 40%
C owns 25% more than A
25% of 40 = 10% more than A
C owns 100 - A'sshre- B share = 100 - 40 -50 = 10%
10% = $ 15000
40% = $ 15000* 4

IMO C

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harshavardhanc: Legendary Member; Posts: 526; Joined: Sat Feb 21, 2009 11:47 pm; Location: India; Thanked: 68 times; GMAT Score:680

by harshavardhanc » Mon Mar 22, 2010 10:21 pm

gmatwriter wrote:Please Explain:

Company A owns 40% of the stock in the XYZ corporation. Company B owns $15000 shares. Company C owns all the shares not owned by companies A or B. How many shares of stock does company A own if company C has 25% more shares than company A?

a.45,000
b.50,000
c.60,000
d.75,000
e.90,000

c

I think the best point to start from is the comparison of C and A.

C has 25% more than A. i.e 1/4the more than A OR 1/4th of 40% OR 10% more than A. or 50% of the total.

therefore, B has 10% which is given to be 15000, or 100% will be 150000.

Now, A + B is 50%, which is 75000. therefore 75000 - 10% (B's share) = 75000 - 15000 = 60000. hence, C.

Regards,
Harsha