Suppose a firm has 50 million shares of common stock outstanding and eight candidates are up for election to six 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 ensure election 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 to the board? (For all requirements, enter your answers in whole numbers, not millions.)

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
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Suppose a firm has 50 million shares of common stock outstanding and eight
candidates are up for election to six 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
ensure election 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 to the board? (For
all requirements, enter your answers in whole numbers, not millions.)
Transcribed Image Text:Suppose a firm has 50 million shares of common stock outstanding and eight candidates are up for election to six 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 ensure election 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 to the board? (For all requirements, enter your answers in whole numbers, not millions.)
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