What is the percentage of the founders family votes

Assignment Help Financial Management
Reference no: EM13829123

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 ten 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 1,800,000 total shares currently outstanding, the original founder's family owns 52,525 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.)

 Percentage of votes      %

Reference no: EM13829123

Questions Cloud

Risk investments-net present value : What is the net present value of a commercial real estate investment with the following cash flows, if your required return is 12% of similar risk investments? The cost of retail storefront project is $500,000, but expect to be able to sell it after ..
Differentiate between the terms recruitment and selection : The terms recruitment and selection are often used interchangeably and the process is not always sufficiently planned. Explain the difference between the terms recruitment and selection and explain the characteristics of a good recruitment and sel..
Compare the work done with the specifications provided : Ace contracted with Jones to do certain remodeling work on the building owned by Jones. Jones supplied the specifications for the work. The contract price was $70,000. After the work was completed, Jones was dissatisfied and had Clay, an expert, comp..
Case studyp-crisis control : Please refer to the case study in the PDF document attached. Write an essay that responds to these two questions:
What is the percentage of the founders family votes : 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. What is the percentage of the founder's family votes to Class B votes?
Mergers and acquisitions : Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2, 1 million shares outstanding, and a price per share of $25. You..
Regression analysis estimates : Regression analysis estimates
Underestimation of the level of assets needed may : Underestimation of the level of assets needed may
Difference between the terms recruitment and selection : The terms recruitment and selection are often used interchangeably and the process is not always sufficiently planned. Explain the difference between the terms recruitment and selection and explain the characteristics of a good recruitment and sel..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Considering investing in a new dental instrument

West Side Dental Group is considering investing in a new dental instrument. The instrument costs $90,000 and can be depreciated to zero on a straight-line basis over its life of 3 years. The instrument is expected to have no salvage value. Currently,..

  What is allisons cost of new outside equity capital

Allison Engines Corporation has established a target capital structure of 40% debt and 60% common equity. The current market price of the firm's stock is P0 = $36; its last dividend was D0 = $2.80, and its expected dividend growth rate is 8%. What is..

  Concerning a lockbox service

Your firm has an average receipt size of $60. A bank has approached you concerning a lockbox service that will decrease your total collection time by 1 day. You typically receive 25,000 checks per day. The daily interest rate is 0.016 percent. What i..

  Exotic cuisines employee stock options

What happens is that a company experiences a stock price decrease, which leaves employee stock options farout of the money or underwater and what are the implications for employee stock options? In light of your answer, can yourecommend an improvem..

  Should the old riveting machine be replaced by the new one

Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $30,000 to $52,000 per year.  Should the old riveting machine be replaced by the new one?

  What is maximum gain and loss in this covered call position

An investor buys 200 shares of stock selling at $50. The stock now sells for $70 and the investor writes a 70 call for $3.50. What is the maximum gain and loss in this covered call position?

  Determine the payback period for this project

Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for ten years. The firm has a maximum acceptable payback period of eight years. Determine the..

  Abercrombie fitch has inventory levels thousand at end

Abercrombie & Fitch has inventory levels of $385,857 thousand and $310,645 thousand at the end of fiscal-year ending 2011 and 2010 respectively. Cost of goods sold for 2011 is $1,256,596 thousand. Calculate the inventory turnover ratio and the avera..

  Conduct customer segment research or go directly to market

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 percent change of success. However, the firm can conduct customer segment research, which will take a year and cost $600,000. By g..

  A commodity linked bond is issued with an embedded call

a commodity linked bond is issued with an embedded call option. the current commodity price is 110 as is the exercise

  What is the yield to maturity-annual coupon bonds

The 7 percent annual coupon bonds of IPO, Inc. are selling for $1,021. The bonds have a face value of $1,000 and mature in seven years. What is the yield to maturity?

  About the return on total assets

Last year the return on total assets in Jeffrey Company was 9.5%. The total assets were 1.9 million at the beginning of the year and 2.1 million at the end of the year. The tax rate was 30%, interest expense totalled $100 thousand, and sales were $4...

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd