proportions and ratio

Question

stockholder A owns 51.4%; stockholder B owns13.2%; stockholder C's 35.4% is bought back by a Corp. and must be divided between A and B pro-rata. What are the new %'s for A&B?

5000 shares is total or currently A=2570; B=600; C=1770 (bought back by Corp.)

Answer 1

1770 is what is being divided among shareholder A and B therefor take 1770 and multiply it by each share holders current percentage to get the porportion of Stockholder C's shares.

 

Start: 

2570+600=3170

2570/3170=81%

600/3170=19%

 

1770*.19=336

1770*.81=1434

 

So Stockholder A will then have 2570+1434= 4004 shares or 81% stock ownership 

     Stockholder B will then have 600+336=936 shares or 19% Stock ownership

 

* rounding did occur, so it all depends on how the instructor might want it rounded so the answer might change a bit