New high-technology melting process

Assignment Help Financial Management

Reference no: EM131013868

Macho Iron Works was established in 1989. Four years later, the company went public. At that time, Fred Macho, the original owner, decided to establish two classes of stock. The first represents Class A founders’ stock and is entitled to 10 votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2005 Mr. I.M. Meek was considering purchasing shares in Macho Iron Work. While he knew founders’ shares were not present in many companies, he decided to buy the shares anyway because of a new high-technology melting process the company had developed.

Of the 1,500,000 total shares currently outstanding, the original founder’s family owns 62,635 shares. What is the percentage of the founder’s family votes compared to the Class B votes?

Reference no: EM131013868

Questions Cloud

Uses the effective interest method of amortization : On July 1, 2014, Frick Co. purchased, as a held-to-maturity investment, $1,000,000 of Frack Inc.'s 8% bonds for $946,000, including accrued interest of $40,000. Frick uses the effective interest method of amortization. In its December 31, 2015 balanc..

Discuss the application of the magnetic vector potential : Discuss the duality between the radiation fields of a small circular loop antenna with those of a Hertzian dipole at the center of the loop and aligned with its axis.

What is the present worth of the machine : Cupid Chocolates bought a candy making machine that had an initial cost of $83760. It has a salvage value of $11164. Its operating costs are $5058 per year. It is saving the company $1245 per year because it is more efficient. The company anticipates..

What is the slope of the security market line : 1. If the market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04, what is the slope of the security market line?

New high-technology melting process : Macho Iron Works was established in 1989. Four years later, the company went public. At that time, Fred Macho, the original owner, decided to establish two classes of stock. The first represents Class A founders’ stock and is entitled to 10 votes per..

What is the beta of the portfolio : Q.1 An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

The current forward interest rate for the third year : You are the borrower in an FRA where you will pay 5% (annual compounding) for the third year on $1 million. Write down the calculate process. The current forward interest rate for the third year is 5.1% (annual compounding). The 3-year zero rate is 4..

What amount of unamortized premium bond should frick report : Frick Co. has outstanding a 7%, ten-year $100,000 face-value bond. The bond was originally sold to yield 6% annual interest. Frick uses the effective interest rate method to amortize bond premium, and does not elect the fair value option for reportin..

A car company is offering a choice of deal : A car company is offering a choice of deals. You can receive $500 cash back on the purchase, or a 3 percent APR, 4-year loan. The price of the car is $15,000 and you could obtain a 4-year loan from your credit union, at 7 percent APR. Which deal is c..

User Account

All Pages