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. Round down your answer to the nearest whole number. Number of directors c-2. Will he control the board?
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. Round down your answer to the nearest whole number. Number of directors c-2. Will he control the board?
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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Transcribed Image Text: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. Round down your answer to the nearest whole number.
Number of directors
c-2. Will he control the board?
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