What is the percentage of the founder family votes to class

Assignment Help Financial Management

Reference no: EM131624410

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 nine 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 1,750,000 total shares currently outstanding, the original founder's family owns 52,425 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: EM131624410

Questions Cloud

How can the patient engage in self-care practices : How can the patient engage in self-care practices, such as modifying diet and exercise, and understand the nature of the illness, treatment, and prognosis?

Which stock should you buy and why : You are evaluating two possible stock investments, Leverage Co. and Value Corp. Leverage Co. has an expected return of 10% and a beta of 1.4.

Firwood filed suit to collect the difference plus interest : the General Tire Contracted provided and Firwood filed suit to collect the difference plus interest

Assess the impact on the required return of the security : A security has a beta of 1.2. Is this security more or less risky than the market? Explain. Assess the impact on the required return of this security.

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

Define the third industrial revolution : Define the third industrial revolution? List and then explain three things you foresee this third industrial revolution having an impact on.

Describe the change from the current : Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an inves

Calculate the change in return for each security : Referring to Problem I, using the portfolio beta, what would you expect the value of your portfolio to be if the market rallied 20%? Declined 20%?

Compute the value of the common stock : Enterprise Storage Company has 520,000 shares of cumulative preferred stock outstanding, Compute the value of the common stock.

User Account

All Pages