Stansfield Corporation is currently engaged in a vicious proxy fight. There are 10,000 shares outstanding-all of which areexpected to vote. Each share gets 1 vote. The firm has cumulative voting in place.What is the minimum number of shares required to guarantee you TWO (2) seats on the board of directors? The election is for 3of 10 seats and there are 6 candidates.

Cumulative voting in a firm is a governance mechanism that enables shareholders to wield their…

Answered: Stansfield Corporation is currently…

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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Mr. Meyers wishes to know how many shares are necessary to elect 3 directors out of 11 directors up for election in the Austin Power Company. There are 83,000 shares outstanding. (Do not round intermediate calculations.)
16 Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 51,001 shares. Ms. Ramsey and her friends on the board control 61,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How many directors can Mr. Clark be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors b. How many directors can Ms. Ramsey and her friends be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors c-1. How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes? (Do not round intermediate calculations. Round down…
Suppose, you own 2,000 shares in a company with 5,000 shares outstanding. There are 8 directors up for election via cumulative voting. How many directors can you elect?" 3 2 1 5 4
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Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 41,001 shares. Ms. Ramsey and her friends on the board control 51,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How many directors can Mr. Clark be sure of electing? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number. Number of directors b. How many directors can Ms. Ramsey and her friends be sure of electing? Note: Do not round intermediate calculations. Round down your answer to the nearest whole number. Number of directors c-1. How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes? Note: Do not round intermediate calculations.…

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