a.
To determine: The number of directors that Mr. Clark is sure of electing.
Introduction:
Cumulative Voting:
It is a voting system helpful in strengthening the rights of minor shareholders. It also allows the shareholders to cast their vote to elect the board of directors of the company.
Shares Outstanding:
They are referred to as the common shares of the authorized company, which are actually held by the investors and represent ownership of the company. They are also termed as issued shares.
a.

Answer to Problem 9P
The number of directors Mr. Clark is sure of electing while cumulative voting is practiced is 4.
Explanation of Solution
Calculation of the number of directors:
b.
To determine: The number of directors that Ms. Ramsey and friends are sure to vote for.
Introduction:
Cumulative Voting:
It is a voting system helpful in strengthening the rights of minor shareholders. It also allows the shareholders to cast their vote to elect the board of directors of the company.
Shares Outstanding:
They are referred to as the common shares of the authorized company, which are actually held by the investors and represent ownership of the company. They are also termed as issued shares.
b.

Answer to Problem 9P
The number of shares that Ms. Ramsey and friends are sure to vote for is 5.
Explanation of Solution
Calculation of the number of directors:
c.
To determine: The number of directors that can be elected by Mr. Clark if all the proxies for the votes that remain uncommitted are obtained by him as well as whether the board will be controlled by him or not.
Introduction:
Cumulative Voting:
It is a voting system helpful in strengthening the rights of minor shareholders. It also allows the shareholders to cast their vote to elect the board of directors of the company.
Shares Outstanding:
They are referred to as the common shares of the authorized company, which are actually held by the investors and represent ownership of the company. They are also termed as issued shares.
c.

Answer to Problem 9P
The number of directors that can be elected by Mr. Clark if all the proxies for the votes that remain uncommitted are obtained by him is 7.
Yes, the board will be controlled by him.
Explanation of Solution
Calculation of the number of directors:
d.
To determine: The number of directors that can be elected by Mr. Clark.
Introduction:
Cumulative Voting:
It is a voting system helpful in strengthening the rights of minor shareholders. It also allows the shareholders to cast their vote to elect the board of directors of the company.
Shares Outstanding:
They are referred to as the common shares of the authorized company, which are actually held by the investors and represent ownership of the company. They are also termed as issued shares.
d.

Answer to Problem 9P
The number of directors to be elected by Mr. Clark is 4.
Explanation of Solution
Calculation of the number of directors to be elected:
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Chapter 17 Solutions
BUS 225 DAYONE LL
- Explain 18. Which of the following is not a financing activity?* Repayment of long-term debt Issuance of equity Investments in businesses Payment of dividends.arrow_forwardExplain. What is working capital?* Equity Capital + Retained Earnings Equity Capital - Total Liabilities Total Assets - Total Liabilities Current Assets - Current Liabilitiesarrow_forwardExplain Which of the following is not true about goodwill?* Goodwill needs to be evaluated for impairment yearly Goodwill is treated as a tangible asset in accounting Goodwill is a result of purchasing a company for a price higher than the fair market value of the target company's net assets Goodwill can be comprised of things such as good reputation, loyal client base, and brand recognition.arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
