Answer:
Rust Pipe Co.
The Percentage of the Founder's Family Votes to Class B Votes:
= Founder's Family Votes / Class B Votes x 100 = 577,775/1,747,475 x 100 = 33.-6%
Explanation:
Total votes for the Founder's Family = 52,525 x 11 = 577,775
Class B votes = 1,747,475 (1,800,000 - 52,525) x 1 vote = 1,747,475
Founders of companies who want to go public but still retain control of the entity may decide to issue two or more classes of shares in order to allocate more voting rights to some classes than the others.
In this case, while the founder's family currently held 52,525 shares representing 29.2% of the total outstanding shares, in voting rights, the founder's family has 33.6% control.
