Suppose a firm has 16 million shares of common stock outstanding and five candidates are up for election tofour seats on the board of directors.a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensureelection to the board?b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensureelection to the board?(For all requirements, enter your answers in whole numbers, not millions.)a.b.X Answer is com plete but not entirely correct.Minimum number of votesMinimum number of votes12,800,001 X8,000,001 X

In cumulative voting, shareholders are allowed to cast all their votes for a single candidate or…

Answered: Suppose a firm has 16 million shares of…

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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Starware Software was founded last year to develop software for gaming applications. The founder initially invested $700,000 and received 9 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.20 million and wants to own 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)? a. How many shares must the venture capitalist receive to end up with 13% of the company? The venture capitalists will receive million shares. (Round to three decimal places.)
You owned 300 shares of Microsoft stock. But you just sold 100 shares this morning. Which one of the following statements best describes the stock sale transaction? Group of answer choices a. This is an example of a secondary market transaction. b. This is an example of primary market transaction. c. This is an example of an exchange of physical assets. d. This is an example of money-market transaction.
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Suppose Sally Rubber Co. is going public and, based on the bookbuilding process, decides it will be issuing 300,000 shares of common stock to raise capital to fund the company's proposed expansion. Suppose a Dutch auction (an auction in which the auctioneer begins with a high asking price and lowers it until some bidder accepts the price) is used to allocate shares in the Sally Rubber Co. IPO. The following table shows the number of shares requested by potential bidders. Bids Bidder 1 Number of Shares Requested Price per Share 50,000 $65 Bidder 2 100,000 $55 Bidder 3 150,000 $54 Bidder 4 200,000 $48 Bidder 5 250,000 $41 Bidder 6 300,000 $39 To sell the 300,000 shares, Sally Rubber Co.'s IPO minimum offer price should be $ The total amount of funding raised will be $ Given the typical 7 percent transaction cost due to the issuing firm, the IPO would result in a transaction cost of $
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 12 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this investment (the post-money valuation)?
For the following four IPOs, please find the total amount raised, the amount that went to the firm, and the amount that went to the underwriters/investment banks, and the gross spread. This information is available on the SEC Edgar database. Total S Amount S Raised by the SAmount Paid to S Offer S Bid Gross Raised Investment Banks Price Price Issuer Spread % Wingstop Shake Shack Alibaba Wingstop
Give typing answer with explanation and conclusion 1. To incentivize our employees, we are considering issuing them employee equity. The average employee would be issued stock options to purchase 800 shares at our current stock price of $210 per share. We are hopeful that the Smoothie business will catapult us to $230 per share in the future but recognize the risks. If an employee exercises the options at $210 per share, how much would the employee make before taxes?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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