What is percentage of founder family votes to class votes

Assignment Help Financial Management

Reference no: EM131998013

Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to twelve votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders’ shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes.

Of the 1,600,000 total shares currently outstanding, the original founder's family owns 52,125 shares.

What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131998013

Questions Cloud

Calculate project cash-flow table : Retainage is 10%, and there is a 1-month delay in payment by the owner to the contractor. Calculate the project cash-flow table.

You be indifferent between accepting project and rejecting : At what discount rate would you be indifferent between accepting the project and rejecting it?

Know the exact amount of money : She is willing to withdraw and buy a new car today; but does not know the exact amount of money she will get it

Provide the higher present value for future dividends : Which plan will provide the higher present value for the future dividends? How much in total dividends per share will be paid under each plan over five years?

What is percentage of founder family votes to class votes : What is the percentage of the founder's family votes to Class B votes?

What is anticipated price of stock after reverse stock split : How many shares will he own after the reverse stock split? What is the anticipated price of the stock after the reverse stock split?

Make the system profitable for cow chips : How many customers each day, on average, are needed to make the system profitable for Cow Chips?

Demonstrate filing requirements for individual tax returns : Case 1 Because it is important for accountants to demonstrate the filing requirements for individual tax returns,

Compute current yield on both bonds : Compute the current yield on both bonds. Has your answer changed between parts b and c of this question in terms of which bond to select?

User Account

All Pages