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a man who owned 25% of the equity capital of a certain
company sold 1/2 of his holding last year and 5/12 of its
remaining this year. what part of the business does he own now
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Answer Posted / angu ganesh
A man having 25% of equity capital that means 1/4.
he sold 1/2 of the 25%. That means (1/2)*(1/4)=1/8.
Remaining equity share is (1/4)-(1/8)=1/8.
Next year he spent 5/12 of the remaining. That is
(5/12)*(1/8)=5/96.
Remaining equity is (1/8)-(5/96)= 7/96 .
So 7/96 is the answer for this question.
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