Question: Bertrand Manufacturing (B). Assume all of the same debt and equity values for Bertrand Manufacturing in Problem, with the sole exception that both A-shares and B-shares have the same voting rights-one vote per share.
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?
Problem: Bertrand Manufacturing (A). Dual classes of common stock are common in a number of countries. Assume that Bertrand 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.
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?