EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 7, Problem 15P
a)
Summary Introduction
To determine: Number of shares necessary to ensure the election.
b)
Summary Introduction
To determine: Number of shares necessary to ensure two individual elections to BOD.
c)
Summary Introduction
To identify: The total numbers of votes are necessary for elections in part (a) and (b).
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Chapter 7 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 7 - Prob. 1QTDCh. 7 - Prob. 2QTDCh. 7 - Prob. 3QTDCh. 7 - Prob. 4QTDCh. 7 - Prob. 5QTDCh. 7 - Prob. 6QTDCh. 7 - Prob. 7QTDCh. 7 - Prob. 8QTDCh. 7 - Prob. 9QTDCh. 7 - Prob. 10QTD
Ch. 7 - Prob. 11QTDCh. 7 - Prob. 12QTDCh. 7 - Prob. 13QTDCh. 7 - Prob. 14QTDCh. 7 - Prob. 15QTDCh. 7 - Prob. 16QTDCh. 7 - Prob. 17QTDCh. 7 - Prob. 18QTDCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29P
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- Suppose that you represent a group of shareholders who collectively holds 300,000 shares of stock in XYZ Corporation. XYZ Corporation has cumulative voting and has a total of 2,000,000 shares outstanding. There are five open seats on the Board of Directors and seven candidates running for a position on the BOD. Can your group be assured that it can get one person on the BODs?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_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
- You want a seat on the board of directors of Four Keys, Incorporated. The company has 220,000 shares of stock outstanding and the stock sells for $69 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board? Multiple Choice 33,001 shares 73, 334 shares 110,001 shares 36, 668 shares 44,000 sharesarrow_forwardIf 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. Maximum Number of Votes a. Majority voting b. Cumulative votingarrow_forwardSuppose a firm has 16.9 million shares of common stock outstanding and eight candidates are up for election to four seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board?b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board?(For all requirements, enter your answers in whole numbers, not millions.)arrow_forward
- 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?arrow_forwardMidland 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.…arrow_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_forward
- Suppose a firm has 49.6 million shares of common stock outstanding and 14 candidates are up for election to 7 seats on the board of directors. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election of 1 member to the board? (Do not round intermediate calculations. Round your answer to a whole number.)arrow_forwardSuppose a firm has 16 million shares of common stock outstanding and five candidates are up for election to four seats on the board of directors. a. If the firm uses cumulative voting to elect its board, what is the minimum number of votes needed to ensure election to the board? b. If the firm uses straight voting to elect its board, what is the minimum number of votes needed to ensure election to the board? (For all requirements, enter your answers in whole numbers, not millions.) a. b. X Answer is com plete but not entirely correct. Minimum number of votes Minimum number of votes 12,800,001 X 8,000,001 Xarrow_forwardYou want a seat on the board of directors of Four Keys, Incorporated. The company has 200,000 shares of stock outstanding and the stock sells for $69 per share. There are currently 5 seats up for election. The company uses straight voting. How many shares do you need to guarantee that you will be elected to the board? Multiple Choice 90,001 shares 100, 001 shares 66, 668 shares 40, 000 sharesarrow_forward
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