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(7) There are 200 shares outstanding in H Corp and Ellen owns 40 of them. If she has 10 shares redeemed will the redemption

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(7) There are 200 shares outstanding in H Corp and Ellen owns 40 of them. If she has 10 shares redeemed will the redemption qualify to be treated as a sale under the "substantially disproportionate" rules of Section 302(b)(2)? Briefly explain the calculations you used to obtain your result. (5 Points)

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