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 1 year 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...
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?
Ali invested $300,000 in a small project for an interest rate of 8%. Four years later,...
Ali invested $300,000 in a small project for an interest rate
of 8%. Four years later, he invested another $600,000 in the same
project but this time for an interest rate of 10%. What is the
total amount of money he is going to receive after 12 years of his
investment period?
The Petrochemical manufacturing company is planning to increase
the production by replacing a new continues stirred tank reactor.
The costs of reactor shown in table below. Calculate the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Discuss intangibility, inseparability, contingent consumption and heterogeneity features of financial services marketing
- Steam used to sterilize fermentation equipment is piped 20 m from a factory boiler room through...
- Research supports the idea that - 30 minutes of activity is optimal for weight loss -...
- Instructions: Complete the following case study and upload it to the assignment section prior to the...
- Compare and contrast two of the personality theories in psychology. (250 words)
- Language:c++ choice b and c dont display the file rearranged why is that and how can...
- In Python Write a function to read a Sudoku board from an input string. The input...
ADVERTISEMENT