Highway 65, Incorporated, is going to elect Seven board members next month.Marisol owns 17.3 percent of the total shares outstanding.a. What percentage of stock is needed to have one of her friends elected under thecumulative voting rule? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)b. What percentage of stock is needed to have one of her friends elected under thestaggered cumulative voting rule, under which shareholders vote on One boardmember(s) at a time? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)Answer is complete but not entirely correct.8.33%a. Percent of stock neededb. Percent of stock needed50.00%

Variables in the question:No. of board members to be elected next month=7

Answered: Highway 65, Incorporated, is going to…

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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Highway 65, Incorporated, is going to elect Seven board members next month. Marisol owns 17.3 percent of the total shares outstanding. a. What percentage of stock is needed to have one of her friends elected under the cumulative voting rule? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What percentage of stock is needed to have one of her friends elected under the staggered cumulative voting rule, under which shareholders vote on One board member(s) at a time? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Percent of stock needed b. Percent of stock needed % %
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