Multiple Choice117,501 sharesYou want a seat on the board of directors of Four Keys, Incorporated. The companyhas 235,000 shares of stock outstanding and the stock sells for $48 per share. Thereare currently 3 seats up for election. The company uses straight voting. How manyshares do you need to guarantee that you will be elected to the board?88,126 shares58,751 shares105,751 shares78,333 sharesSaved< Prev31 of 39HelpNext >Save & Exit

Straight voting is a type of voting in which the individual needs to have more than 50% of shares in…

Answered: You want a seat on the board 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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2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 100,000 shares of common stock. Stock has par value of per $0.60 share and was issued at $30.00 per share. Issued 14,000 shares of preferred stock at par value as payment in exchange for legal services. • Exchanged 260,000 shares of common stock for land with an appraised value of $650,000.00 and a building with an appraised value of $500,000.00 Earned Net income $900,000.00.) Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide:. A. Prepare Mulatto Company's Stockholders equity section of the balance sheet at December 31, 2020. The following information must be…
The following events occurred regarding the company's executive compensation plan. 2. On 1/1/x4, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 20,000 shares of common stock at $40 per share. The par value is $10 per share. 3. On 2/1/x4, options were granted to each of five executives to purchase 20,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on 2/1/x6. It is assumed that the options were for services performed equally in 20x4 and 20x5. The Black-Scholes option pricing model determines total compensation expense to be $2,100,000. 3. At 2/1/x6, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeited Prepare the journal entries for 2/1/x6
How do I solve subsections D and E?
Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12 Million. The Board decides to use a rights offering to raise new capital. Each shareholder will receive one right for each share. Laila Sims currently owns 4,000 shares of Teasler stock. Four rights plus $34 cash are needed to buy one new share. The ex-rights date is in 30 days. a. What is the value of a right? b-1. How many of the new shares could Laila buy if she exercised all her rights? b-2. How much cash would this require? c. How many new shares is Teasler issuing and what are the proceeds? d. If the price of Teasler shares price moves to $30 what is the value of the right ( Assume still rights-on)
III. Problems 1 RFBT Exercise Explain or state briefly the rule or reason for your answers. 1. A contract was entered into in the name of the corporation with the unanimous approval of all the stockholders. Is the contract binding on the corpora- tion? 2. X, a director in a corporation, is recorded in the book of the corporation as owner of one (1) share of stock. X admits that the true owner is Y, its President. Is X disqualified to be a director? 3. A vacancy occurs in the board of directors, fur- ther reducing the number from 11 to 6 members. Who is empowered to free the vacancy, the stockholders or the incumbent directors? 4. X was elected director in a corporation. The other directors who supported his election, assured hir a monthly compensation of P50,000. In fact, they approved a resolution granting him the compensation. Is X entitled to the compensation?
You currently own 600 shares of stock AAA. The stock currently trades at $3 a share. The company is contemplating a 1-for-3 reverse stock split. Which of the following best describes your position after the proposed stock split takes place? You will have 200 shares of stock with $9 a share. You will have 1,800 shares of stock with $1 a share. You will have 200 shares of stock with $9 a share. You will have 1,800 shares of stock with $9 a share.
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?
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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