Question: Problem 17-10 (Algo) Strategies under cumulative voting [LO17-2] Rust Pipe Company was established in 1994. Four years later the company went public. At that time,

 Problem 17-10 (Algo) Strategies under cumulative voting [LO17-2] Rust Pipe Company

Problem 17-10 (Algo) Strategies under cumulative voting [LO17-2] 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 fiow of liquids through pipes. Of the 1,400,000 total shares currently outstanding, the original founder's family owns 51,725 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. Problem 17-10 (Algo) Strategies under cumulative voting [LO17-2] 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 fiow of liquids through pipes. Of the 1,400,000 total shares currently outstanding, the original founder's family owns 51,725 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

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