Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Yehti Manufacturing (A). Dual classes of common stock are common in a number of countries. Assume that Yehti Manufacturing has the following capital structure at book value. The A-shares have ten votes per share and the B-shares have one vote per share.
Yehti Manufacturing |
Local Currency (millions) |
Long-term debt |
200 |
|
300 |
Paid-in common stock: |
|
1 million A-shares |
100 |
Paid-in common stock: |
|
4 million B-shares |
400 |
Total long-term capital |
1000 |
- What proportion of the total long-term capital has been raised by A-shares?
- What proportion of voting rights is represented by A-shares?
- What proportion of the dividends should the A-shares receive?
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