Question: You own 19 of a company that you do business
You own 19% of a company that you do business with and are considering buying another 5% of the company. The company provides a great product and great service. The company’s share price has been rising because of its potential. However, it is currently not profitable from an accounting perspective because the company is doing a great deal of research and development. You have asked your CFO to advise you about the consequences of this increase in your ownership position. What would you expect the CFO to say?
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