Quebec-based BRP Inc. designs, develops, manufactures, distributes, and markets a diversified group of products including Ski-Doo snowmobiles, Sea-Doo watercraft, Can-Am motorcycles, and Evinrude engines. The share capital note (Note 16) from the company€™s financial statements for the year ended January 31, 2014, is presented in Exhibit 11€“13. Exhibit 11-13 also includes an extract from BRP€™s annual information form that outlines the multiple-voting share structure.

Required:
a. Describe the changes that the company made to its capital structure when it went public.
b. How much money did BRP raise through its IPO? On a percentage basis, how much were the total fees and expenses incurred as part of the IPO relative to the funds raised though the IPO?
c. Note 16(b) states that prior to the IPO, the company consolidated its outstanding shares on a 3.765-to-1 basis. Explain what this means and what effect this step would have on share value.
d. The extract from the company€™s 2014 annual information form explains that the subordinate voting shares represent 33.1% of the company€™s total issued capital and 7.6% of the voting power attached to all shares. Rephrase this in terms of the company€™s multiple voting shares. Also, quantify the relationship between voting power and the capital invested.

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EXHIBIT 11-13AE EXCERPT FROM BRP INC·2014 ANNUAL REPORT 16. CAPITAL STOCK Prior to the closing of the IPO, the Company's authorized capital stock was comprised of an unlimited number of Class A voting Common Shares, an unlimited number of Class A.1 voting Common Shares, an unlimited number of Class B non-voting Common Shares, an unlimited number of Super B non-voting Common Shares and an unlimited number of non-voting preferred shares a) Share Reorganization The Company's authorized capital stock was amended prior to the closing of the IPO and all the classes of shares included in the authorized capital stock of the Company prior to the amendment were repealed and replaced by an unlimited number of multiple voting shares and subordinate voting shares with no par value and an unlimited number of preferred shares issuable in series with no par value Also, following the amendment of the authorized capital stock and prior to the closing of the IPO, the Company consolidated its outstanding shares on a 3.765 to one basis b) Initial Public Offering On May 29, 2013, the Company completed the initial public offering of its subordinate voting shares with the curities regulatory authorities in each of the provinces and territories of Canada. The Company issued 12.2 million subordinate voting shares and received gross proceeds of $262.3 million from the issuance ($246.1 million net of related fees and expenses of $22.1 million and income taxes recovery of $5.9 million) On June 27, 2013, the Company issued 1.8 million subordinate voting shares following the exercise of the over allotment option granted to the underwriters in connection with the IPO. The Company received gross proceeds of $39.3 million from the issuance ($37.7 million net of related fees and expenses of $2.1 million and income taxes recovery of $0.5 million) c) Secondary Offerings During the year ended January 31, 2014, Bain Capital and CDPQ completed two secondary offerings for a total of 18,000,000 subordinate voting shares of the Company to a syndicate of underwriters. Prior to such transactions Bain Capital and CDPQ converted an aggregate of 18,000,000 multiple voting shares into an equivalent number of subordinate voting shares. The Company did not receive any of the proceeds of these secondary offerings. In accor dance with the terms of the registration rights agreement entered into in connection with its initial public offering, the Company incurred approximately $0.9 million of fees and expenses related to these secondary offerings 16. CAPITAL STOCK ICONTINUED] The changes in capital stock issued and outstanding and classified in liabilities were as follows Number of shares Carrying Amount Class A Common Shares Balance at February 1, 2012 Balance at January 31, 2013 Repurchased Reduction of stated capital Exchanged for multiple voting shares Balance at January 31, 2014 229,387,717 229,387,717 S32.70 32.7 (-27.5) (-229,387,708) 2 (-14.8) Balance at February 1, 2012 Exchanged for subordinate voting shares Exchanged for multiple voting shares Exchanged for subordinate voting shares (-14.4) Issued in exchange of Class A Common Shares Issued in exchange of Class A.1 Common Shares Issued in exchange of Class B Common Shares Exchanged for subordinate voting shares 9 Issued in exchange of Class B Common Shares Issued in exchange of Class Super B Common Shares 2 Issued following the exercise of the over-allotment option 354.00 Total outstanding at Ja S360.40 4