Sasquatch Corporation (A). Dual classes of common stock are common in a number of countries. Assume that
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Sasquatch Corporation (A). Dual classes of common stock are common in a number of countries.
Assume that Sasquatch Corporation has the following capital structure at book value. The A-shares have 15 votes per share and the B-shares have 3 votes per share.
Sasquatch Corporation Local (millions) Currency Long-term debt 250 Retained earnings 350 Paid-in common stock:
1 million A-shares 200 Paid-in common stock:
3 million B-shares 600 Total long-term capital 1,400
a. What proportion of the total long-term capital has been raised by A-shares?
b. What proportion of voting rights is represented by A-shares?
c. What proportion of the dividends should the A-shares receive?
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Related Book For
Fundamentals Of Multinational Finance
ISBN: 9781292215211
6th Global Edition
Authors: Michael Moffett
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