EBK FUNDAMENTALS OF CORPORATE FINANCE
9th Edition
ISBN: 9781260049237
Author: BREALEY
Publisher: MCGRAW HILL BOOK COMPANY
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Question
Chapter 14, Problem 8QP
a.
Summary Introduction
To estimate: The maximum number of voting a shareholder is allowed under majority voting.
b.
Summary Introduction
To estimate: The maximum number of voting a shareholder is allowed under cumulative voting.
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Students have asked these similar questions
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.
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.
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?
Chapter 14 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
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Similar questions
- Which of the following permits shareholders to multiply the number of their shares by the number of directors to be elected and to cast the resulting total of votes for one or more directors? Multiple Choice Preference voting Cumulative voting Ranked voting Approval votingarrow_forwardThere 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 onearrow_forwardYou own 250 shares out of 1,500 shares outstanding. Your co-owner owns the other 1,250 shares. There are 4 directors being elected. Assuming cumulative voting, calculate the number of shares you need to own to elect at least one director to the Board.arrow_forward
- Cumulative voting allows for meaningful participation by Select one: a. minority shareholders. b. preferred shareholders. c. institutional shareholders. d. bondholders. e. all stakeholders.arrow_forwarda. What is the Effective Annual Rate (EAR) and what is its purpose? b. 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.arrow_forwardRho Corporation is electing three directors to its board using cumulative voting, and there are 1,000,000 shares outstanding. If you were a shareholder who wants to be elected to the board, how many Rho Corporation shares must you own to guarantee yourself a directorship seat on the board?arrow_forward
- Stockholders: a. Each have one vote at the annual meeting b. Elect the board of directors c. All of the above d. Are active in day to day management of the firmarrow_forwardA 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.arrow_forward64. The manner of voting in the election of the Board of Directors in a stock corporation may be done through: * A. Straight Voting Only B. Cumulative Voting Only C. Straight or Cumulative Voting at the option of the Stockholder D. Straight Voting if the stockholder owns up to 5,000 shares of stocks E. Cumulative Voting if the stockholder owns up to 50,000 shares of stockarrow_forward
- 63. XYZ is a stock corporation that wishes to elect 15 directors. stockholder C, owns 5,000 shares of stock in XYZ corporation. Apply the formula used in the casting of votes to determine the amount of shares that stockholder C can cast during the election. * A. C is entitled to 5,000 shares. B. C is entitled to 75,000 shares C. C is entitled to 750,000 sharesarrow_forwardWhat feature allows others (typically managers) to vote for shareholders who don't want to attend the annual meeting? Straight voting Cumulative voting Staggered voting Proxy votingarrow_forwardThe 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?arrow_forward
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