The Beasley Corporation has been experiencing declining earnings but has just announced a 50 percent salary increase for its top executives. A dissident group of stockholders wants to oust the existing board of directors. There are currently 13 directors and 40,000 shares of stock outstanding. Ms. Wright, the president of the company, has the full support of the existing board. The dissident stockholders control proxies for 19,801 shares. Ms. Wright is worried about losing her job. a-1. Under cumulative voting procedures, how many directors can the dissident stockholders elect with the proxies they now hold? Note: Do not round intermediate calculations. Round your answer down to the nearest whole number. Number of directors a-2. How many directors could they elect under majority rule with these proxies? ○ One Two Three Four None b. How many shares (or proxies) are needed to elect seven directors under cumulative voting? Note: Do not round intermediate calculations. Round your answer up to the nearest whole number.

Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a that gives the management group control over his shares. Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $43.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $34.40 per share. Larry worries about the value of his investment. Larry's current investment in the company is If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth . Larry could be protected if the firm's corporate charter includes a This scenario is an example of provision. If…

When Owens Corning emerged from bankruptcy in 2006, the debtholders became the sole owners of the company. But the old stockholders were not left entirely empty handed. Suppose they were given warrants to buy the new common stock at any point in the next seven years for $45.25 a share. Because the stock in the restructured firm was worth about $30 a share, the stock needed to appreciate by 50% before the warrants would be worth exercising. The standard deviation of Owens Corning stock was 41% a year and the interest rate when the warrants were issued was 5%. Owens Corning did not pay a dividend. Ignore the problem of dilution. Calculate the call value of Owens Corning warrants. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value $

Your company's dividend has remained at $2.80 for several years. The board shows no signs of wanting to change it. If shareholders have a required return of, say, 12.5%, what is an estimate of the value of your stock? Your company's dividend has remained at $2.80 for several years. The board shows no signs of wanting to change it. If shareholders have a required return of, say, 12.5%, what is an estimate of the value of your stock? about $35.00 about $44.64 about $22.40

After learning how to value a stock in his Corporate Finance class, Mark Stark decided to put his knowledge into practice and use the constant growth rate model to value El Tomate Feliz Co. He found that the company was severely undervalued. The stock was trading at $50 per share, but he valued it at $120 per share. Mark complained: “I thought that El Tomate Feliz was a steal and bought as many shares as I could, but the price didn’t go up. I have waited a year, and the price has not changed that much.” Lower necessary rate of return - Mark would have estimated his cost of equity or required rate of return at lower levels, resulting in better intrinsic values as a result of the lower discount rate. What does this mean,”  …Mark would have estimated his cost of equity or required rate of return at lower levels"

Bruce buys ​$9,000 of Sketchy Corporation stock. ​ Unfortunately, a major newspaper reveals the very next day that the company is being investigated for accounting​ fraud, and the stock price falls by 62​%. What is the percentage increase now required for the value of​ Bruce's stock to get back to what he paid for​ it?