What would be Whine's ownership interest in Dine following Chompster's purchase of shares in Dine?
A) 60%
B) 64%
C) 75%
D)80%

Question

Quizplus · Accepted Answer

Initially, Whine owns 80% of Dine. Chompster purchases 20% of the shares, which means they now own 20% of the company. 
Whine's ownership interest in Dine is now 80% of the remaining shares (since Chompster bought 20%), which is (80% of 80%) = 64%. Therefore, the answer is B) 64%.

What Would Be Whine's Ownership Interest in Dine Following Chompster's