Question on Modifiers / Placement Using a MGMAT CAT Example

[akanji]

I am slightly confused on the placement of modifiers. For example, in the options below I know D is wrong, but should the modifier modify the word closet to it "operations" or the subject of the prior sentence as the answer key implies? Any clarification here would be great. Thanks!

In their latest press release, the company's new management stated a plan for expansion of its operations into the global software market via a series of acquisitions in Asia and Latin America.


A.) the company's new management stated a plan for expansion of its operations
B.) the new company's management stated that they planned on expanding its operations
C.) the company's new managers stated their plan to expand its operations
D.) the new company managers stated their plan for its operations, expanding
E.) the company's new management stated that they planned to expand its operations

[akanji]

I posted this a while ago and no one responded. I'm taking the test soon so I would love any color. Thanks and sorry for the bump!

[tim]

perfect example of the tragedy of bumping your own questions. this student probably would have gotten the question answered in time if it had not been bumped, placing it at the absolute end of our queue..

i assume the modifier you're talking about is "expanding...", which because of the comma actually cannot attach to the noun immediately preceding it and instead modifies the verb in the previous clause..