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    smokey415's Avatar
    smokey415 Posts: 1, Reputation: 1
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    Jun 14, 2012, 07:13 PM
    A corporation exercises significant influence over an affiliate in which it holds a 4
    A corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock interest. If its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor corporation?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    Jun 14, 2012, 07:33 PM
    Quote Originally Posted by smokey415 View Post
    A corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock interest. If its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor corporation?
    Obviously it would derive no revenue from its investment
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