Quantitative Reasoning Help!!!

[Heroine]

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Mr. Albert owns 80% of the stock in Albert Glass Works, Inc., which leaves 10,000 shares owned by others. He decides to put some of these shares up for sale in order to found a sister company, which will have an initial worth of $200,000. If the market value of Albert Glass Works, Inc. is currently $20 per share, what percentage of his own holdings must Mr. Albert put up for sale?
a) 20%
b) 25%
c) 33.3%
d) 40%
e) 150%

 

[Streetwolf]

Mr. Albert owns 80% of the stock in Albert Glass Works, Inc., which leaves 10,000 shares owned by others. He decides to put some of these shares up for sale in order to found a sister company, which will have an initial worth of $200,000. If the market value of Albert Glass Works, Inc. is currently $20 per share, what percentage of his own holdings must Mr. Albert put up for sale?
a) 20%
b) 25%
c) 33.3%
d) 40%
e) 150%

He owns 80% so 10,000 must be the other 20%. That means there are 50,000 total so he owns 40,000. He needs to make $200,000 from $20 per share so he'll need $200,000/$20 = 10,000 shares to fund it. That is 1/4 of his shares or 25%. Answer B.

 

[rOOt_cAnAl]

He owns 80% so 10,000 must be the other 20%. That means there are 50,000 total so he owns 40,000. He needs to make $200,000 from $20 per share so he'll need $200,000/$20 = 10,000 shares to fund it. That is 1/4 of his shares or 25%. Answer B.

damn!! Good job Streetwolf!!

 

[Heroine]

You are awsome, Streetwoft!!!! Thanks for the explanation.