Sam owns 60 percent of the stock of Club Corporation. Unrelated individuals own the remaining 40 percent. For a stock redemption of Sam's stock to be treated as an exchange under the "substantially disproportionate" test, what percentage of Club stock must Sam own after the redemption?

Multiple Choice

A. Any percentage less than 60 percent.

B. Any percentage less than 50 percent.

C. Any percentage less than 48 percent.

D. All stock redemptions involving individuals are treated as exchanges.