Baghiben Suppose a firm has 16.5 million shares of common stock outstanding and six candidates are up for election to four seats onthe board of directors.a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election ofone member to the board?b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election of onemember to the board?(For all requirements, enter your answers in whole numbers, not millions.)a. Minimum number of votesb. Minimum number of votes

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

Answered: Suppose a firm has 16.5 million shares…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 27P

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Similar questions

A firm has four open positions on its board of directors. How many shares do you need to own to guarantee your own election to the board if the firm has 387,500 shares of stock outstanding and uses cumulative voting? Each share is granted one vote.
If there are nine directors to be elected, what is the least number of shares you will need to guarantee a seat on the board under cumulative voting?
If there are 10 directors to be elected and a shareholder owns 120 shares, calculate the maximum number of votes that he or she can cast for a favorite candidate under each of the voting methods. Maximum Number of Votes a. Majority voting b. Cumulative voting
Suppose that you represent a group of shareholders who collectively holds 300,000 shares of stock in XYZ Corporation. XYZ Corporation has cumulative voting and has a total of 2,000,000 shares outstanding. There are five open seats on the Board of Directors and seven candidates running for a position on the BOD. Can your group be assured that it can get one person on the BODs?
If there are 10 directors to be elected and a shareholder owns 120 shares, calculate the maximum number of votes that he or she can cast for a favorite candidate under each of the voting methods.
There are 3 directors seats up for election. If you own 1,000 shares of stock and you can cast 3,000 votes for a particular director, this is illustrative of:a. multiple voting.b. sequential voting.c. absolute priority voting. d. cumulative voting. e. straight voting. choose one
If cumulative voting is permitted: A. the total number of votes a shareholder has is equal to the number of shares owned. B. the total number of votes a shareholder has is equal to the number of shares owned times the average number of years the shareholder has owned the shares. C. the total number of votes a shareholder has can be calculated as the number of shares owned times the number of directors to be elected. D. the total number of votes a shareholder has is equal to the number of shares times the number of board meetings the shareholder has attended. E. None of these.
The shareholders of the Unicorn Company need to elect seven new directors. There are 2 million shares outstanding. How many shares do you need to be certain that you can elect at least one director if a. Unicorn has straight voting? b. Unicorn has cumulative voting?
5.
ABC Co. needs to elect four individuals to board of directors position. ABC has 180,000 shares outstanding and the stock is currently selling for $30 . Individual A wants to serve on the board of directors. How much will it cost A (number of shares times price ) to buy a seat if the company uses straight voting? What if the firm uses cumulative voting? $2,700,030; $1,080,030 $2,640,030; $1,320,030 $2,700,030; $1,350,030 $2,640,030; 1,360,030 $2,710,030; $1,430,030
What lesson does the future value formula provide for young workers who are looking ahead to retiring some day? What is the Effective Annual Rate (EAR) and what is its purpose? The value of a share of common stock in a corporation is directly related to the general rights of shareholders, particularly as it applies to the right to vote for directors. Discuss at least four (4) additional rights that common shareholders have.
You want a seat on the board of directors of Four Keys, Incorporated. The company has 220,000 shares of stock outstanding and the stock sells for $69 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board? Multiple Choice 33,001 shares 73, 334 shares 110,001 shares 36, 668 shares 44,000 shares

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