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QUESTION 7. [1 point] Ow nership structure Consider an ownership structure (involving two firms A and B) where Company A owns 10% of Company B's
QUESTION 7. [1 point] Ow nership structure Consider an ownership structure (involving two firms A and B) where Company A owns 10\\% of Company B's shares, and Company B owns 50\\% of Company A's shares. The controlling family owns \1 of Company A's shares, \1 of Company B's shares, and manages Company A and B by holding the CEO position in these companies. If you need, the formula for infinite sum is: \\( (1+x+x 2+x 3+x 4+ \\) \\( \\mathrm{x} 5+\\mathrm{x} 6+\\ldots ..)=1 /(1-\\mathrm{x}) \\). 7.1. Estimate the discrepancy between cash flow rights and control rights of the controlling family on Firm B. 7
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