What proportion of total long-term capital has been raised

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Question: Dual classes of common stock are common in a number of countries. Assume that Yehti Manufacturing has the following capital structure at book value. The A-shares have ten votes per share adn the B-shares have one vote per share.

Yehti Manufacturing	Local Currency (millions)
Long-term debt	200
Retained earnings	300
Paid-in common stock: 1.0 million A-shares	100
Paid-in common stock: 4.0 million B-shares	400
Total long-term capital	1,000

a. What proportion of the total long-term capital has been raised by A-shares?

b. What proportion of voting rights is represented by A-shares?

c. What proportion of the dividends should the A-shares receive?

Reference no: EM131968882

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