Question: please help! Rust Pipe Company was established in 1 9 9 4 . Four years later the company went public. At that time, Roberta Rust,

please help!
Rust Pipe Company was established in 1994. Four years later the company went public. At that time, Roberta
Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders'
stock and is entitled to 8 votes per share. The normally traded common stock, designated as Class B, is
entitled to one vote per share. In late 2010, Mr. Park, an investor, was considering purchasing shares in Rust
Pipe Company. While he knew the 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 1,700,000 total shares currently outstanding, the original founder's family owns 52,325 shares.
What is the percentage of the founder's family votes to Class B votes?
Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal
places.
Percentage of votes
 please help! Rust Pipe Company was established in 1994. Four years

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Problem Analysis Rust Pipe Company has two classes of stock Class A Founders Stock 8 votes per share ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!