Intercorporate Investments EOC Q.7

Hi Guys,

This is probably a really basic question but I cant get my head around. Any assistance would be hugely appreciated.

Hopefully without having to post the whole text from the vignette question and 2x financial statements for Zimt and Oxbow.

  1. In 2009, Zimt’s earnings before taxes includes a contribution (in € millions) from its investment in Oxbow Limited closest to:

Can someone please explain to me how the net effect of Zimt’s stake in Oxbow would be reduced Zimt’s income before taxes by €1 million in 2009?

The value of their stock declined by €3 million and they received €2 million in dividends. The net is a loss of €1 million.

Ahh soo simple :slight_smile:

Thank you soo much Bill.

My pleasure.