ACME Inc. has dual-class shares. Class A shares have one vote each. Class B shares do not carry any votes. Class A shares make out 50% of the total equity. ACME Inc.'s main shareholder is the Saint-John Smythe family which owns 80% of Class A shares. What is the percentage of ownership of the Saint-John Smythe family?

Question

Quizplus · Accepted Answer

The Saint-John Smythe family owns 80% of Class A shares, which make up 50% of the total equity. Therefore, their ownership percentage is 80% of 50%, which equals 40%.

ACME Inc Has Dual-Class Shares