Question
In: Finance
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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?
Solutions
Expert Solution
| No of shares | Voting rights per share | Total Votes | |
| 1,547,875 | 1 | 1,547,875 | |
| 52,125 | 8 | 417,000 | |
| 1,600,000 | 1,964,875 | ||
| Family voting rights to Class B votes | 417000/1547875 | ||
| Family voting rights to Class B votes | 26.94% | ||
jeff jeffy answered 2 years agoRelated Solutions
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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...
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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 eleven 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...
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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 eight 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...
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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 eleven 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...
Rust Pipe Co. was established in 1994. Four years later the company went public. At that...
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 seven 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...
5 Rust Pipe Co. was established in 1994. Four years later the company went public. At...
5
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 eleven 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...
Cameron Co. established a $180 petty cash fund on January 1, 2020. One week later, on...
Cameron Co. established a $180 petty cash fund on January 1,
2020. One week later, on January 8, the fund contained $34.95 in
cash and receipts for these expenditures: postage, $50.40;
transportation-in, $32.40; store supplies, $39.35; and a withdrawal
of $22.90 by Jim Cameron, the owner. Cameron uses the perpetual
method to account for merchandise inventory.
a. Prepare the journal entry to establish the fund
on January 1.
b. Prepare a summary of the petty cash payments
and record the...
Under a firm commitment agreement, Zeke, Co. went public and received $35.25 for each of the...
Under a firm commitment agreement, Zeke, Co. went public and
received $35.25 for each of the 8.9 million shares sold. The
initial offer price was $38 and the stock rose to $41.38. The
company paid $560,000 in direct flotation costs and $215,000 in
indirect costs. What was the flotation cost as a percentage of
funds raised?
Under a firm commitment agreement, Zeke, Co. went public and received $35.25 for each of the...
Under a firm commitment agreement, Zeke, Co. went public and
received $35.25 for each of the 8.9 million shares sold. The
initial offer price was $38 and the stock rose to $41.38. The
company paid $560,000 in direct flotation costs and $215,000 in
indirect costs. What was the flotation cost as a percentage of
funds raised?
a)27.63
b)8
c)17.68
d)29.14
e)23.6
The company WayABC went public last year with its initial public offering price at $29, but...
The company WayABC went public last year with its initial public
offering price at $29, but its first day trading price was $25. Did
investors like its IPO, and why did the firm attempt to price its
initial stocks?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- In the following problem, check that it is appropriate to use the normal approximation to the...
- Java Logic - the idea is for this Plumbers.java to ask the customer if there house...
- consider a firm’s desire to invest in its capital stock and answer the following questions: A)...
- In 2009, Nobel-prize winning economist Paul Krugman wrote, “The paradox of thrift is one of those...
- One electrode compartment consists of an aluminum strip placed in a solution of Al(NO3)3, and the...
- Problem #5: A loan of $44,000 is paid off in 36 payments at the end of...
- How many grams of Na2CO3 should be mixed with 5.00 g of NaHCO3 to produce 100...
ADVERTISEMENT