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
Foundations of Financial Management
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- You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board?arrow_forwardyou want a seat on the board of directors of four keys, the company has 315000 shares of stock outstanding and the stock sells for 46 per share. There are currently 4 seats up for election. If the company uses cumulative voting, how many share do you need to guarantee that you will be elected to the boardarrow_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
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- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT