Calculating Percentages

[SteveH]

I need to calculate fractional ownership, so this presents as a word problem. Four people own portions of a company: Person 1 owns 70% and Persons 2, 3, and 4, own 10 percent each. For tax and nationality issues, Person 1, 3, and 4, must hold their percentage via an intermediary company. So Person 2 will hold 10% directly and the Intermediary company will hold 90%.

What percent of the Intermediary company (holding 90% of the Primary company) should Person 1, 3, and 4, hold so their holdings equal 70% of Primary company (for Person 1) and 10% of Primary company (for Persons 3 and 4)?

Thanks! ??

 

[Deleted member 4993]

I need to calculate fractional ownership, so this presents as a word problem. Four people own portions of a company: Person 1 owns 70% and Persons 2, 3, and 4, own 10 percent each. For tax and nationality issues, Person 1, 3, and 4, must hold their percentage via an intermediary company. So Person 2 will hold 10% directly and the Intermediary company will hold 90%.

What percent of the Intermediary company (holding 90% of the Primary company) should Person 1, 3, and 4, hold so their holdings equal 70% of Primary company (for Person 1) and 10% of Primary company (for Persons 3 and 4)?

Thanks! ??

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[Dr.Peterson]

Suppose the primary company was worth $100. Now the secondary company owns $90. If three people own $70, $10, and $10 of that respectively, what percentage of the secondary company does each own?

I think that makes it easier to see.

 

[SteveH]

Suppose the primary company was worth $100. Now the secondary company owns $90. If three people own $70, $10, and $10 of that respectively, what percentage of the secondary company does each own?

I think that makes it easier to see.

Thanks!
So 70% of 90 = 77.78, and the remaining amount is 22.22 (100 - 77.78), so 11.11% for each of the two other owners, right?

 

[Dr.Peterson]

You got your explanation backward. We aren't asking what is 70% of $90, but what percent of $90 is $70. And that is what you actually did.

So, yes, they need 77.78%, 11.11%, and 11.11% of the secondary company in order to have 70%, 10%, and 10% of the primary company.

 

[SteveH]

You got your explanation backward. We aren't asking what is 70% of $90, but what percent of $90 is $70. And that is what you actually did.

So, yes, they need 77.78%, 11.11%, and 11.11% of the secondary company in order to have 70%, 10%, and 10% of the primary company.

Thank you so much! This site is a prime example of the good that the internet does in our lives ?