A pyramidal ownership structure is a popular means large shareholders often use to acquire control rights that exceed cash flow rights. Suppose Cathryn Gresham, the founder of company Alpha, owns 20 % of shares of company Alpha. Company Alpha, in turn, owns 40% of shares of another public company Beta. Furthermore, company Beta itself owns 45% of yet another public company Delta. What is the cash flow right of Cathryn Gresham over company Delta? What is the difference between the cash flow right and the control right that Cathryn Gresham, the founder of company Alpha, has over company Delta? What’s the implication of the “wedge” between the control and cash rights that she acquired for company Delta?