Convertible debt   LO2 Scrooge Ltd and McDuck Ltd own 55% and 45% respectively of the ordinary shares that carry voting rights at a general meeting of shareholders of Beagle Boys Ltd. McDuck Ltd also holds debt instruments that are convertible into ordinary shares of Beagle Boys Ltd. The debt can be converted at a substantial price, in comparison with McDuck Ltd’s net assets, at any time, and if converted would require McDuck Ltd to borrow additional funds to make the payment. If the debt were to be converted, McDuck Ltd would hold 70% of the voting rights and Scrooge Ltd’s interest would reduce to 30%. Given the effect of increasing its debt on its debt– equity ratio, McDuck Ltd does not believe that it has the financial ability to enter into conversion of the debt. Required Discuss whether McDuck Ltd is a parent of Beagle Boys Ltd.