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Ownership structure Consider an ownership structure involving two firms A and B) where Company A owns 50% of Company B’s shares, and Company B owns 25% 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+x++ x4+xS+ x6+….)=1/(1-x). Estimate the cash flow rights of the controlling family To be more specific, if Company A makes $100, how much is the legal amount that the controlling family should receive? 50% Firm A Firm B 25% 1% 1% Manager

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