Which of the following requirements must be met for a redemption to be treated as substantially disproportionate?
A. After the redemption, the shareholder must own less than 80% of his percentage ownership of voting stock prior to the redemption.
B. After the redemption, the shareholder must own less than 80% of his percentage ownership of common stock (voting and nonvoting) prior to the redemption.
C. The shareholder must own less than 50% of the outstanding stock (in terms of voting power) after the redemption.
D. All of the above must be met.
Answer: D
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