Benefit of Grafoid to FMS shs.If Canadian accounting is the same as in the U.S., in order to consolidate earnings in your financial statement, you have to own 80% or more of a subsidiary. Otherwise, any increase in the price of the stock only adds value to your Balance Sheet which is some circumstances creates a tax liability. Having said that, it would appear that no matter how profitable any of the companies are, it won't increase the profitability of FMS, only increase the $$ in the Balance Sheet.
Agree or disagree anyone?