#### Board of Directors Election Cost CalculationAfter successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Cornwall Enterprises. Unfortunately, you will be the only person voting for you. The company has 430,000 shares outstanding, and the stock currently sells for $51.**Question:**If there are four seats in the current election, how much will it cost you to buy a seat?**Instruction:**Do not round intermediate calculations.---**Input Box:**- Total cost: [ ]---To calculate how much it will cost to buy a seat on the board, consider the following steps and formulas:1. **Determine the Number of Shares Needed per Seat:** \[ \text{Number of Shares Needed} = \frac{\text{Total Shares}}{\text{Number of Seats} + 1} \]2. **Calculate the Total Cost:** \[ \text{Total Cost} = \text{Number of Shares Needed} \times \text{Stock Price} \]Use the given numbers:- Total shares: 430,000- Number of seats: 4- Stock price: $51Apply these numbers to the formulas provided to find the cost.

Total cost refers to the amount that is being spent for buying the seats for occurrence in the…

Answered: After successfully completing your…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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