Question: QUESTION 7. [1 point] Ownership structure Consider an ownership structure (involving two firms A and B) where Company A owns 10% of Company B's shares,

QUESTION 7. [1 point] Ownership structure Consider an ownership structure (involving

QUESTION 7. [1 point] Ownership 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+x2+x3+x4+ x5+x6+)=1/(1x) 7.1. Estimate the discrepancy between cash flow rights and control rights of the controlling family on Firm B

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