Question

Asked Apr 29, 2019

David Rothchild owns 6,001 shares of the Motor Corp. There are 12 seats on the company board of directors, and the company has a total of 78,000 shares of stock outstanding. The Motor Corp. utilizes cumulative voting.

A. Can David Rothchild elect himself to the board when the vote to elect 12 directors is held next week?

Step 1

Calculating the number of directors that can be elected by Mr. Rothchild. We have,

Number of directors that can be elected = [(Share owned – 1) x (Total number of directors to be elected + 1)] / Total number of share outstanding

Number of directors th...

Tagged in

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for t...

A: Computation of the future value at the end of 10th year:Note: FVAF denotes the Future value annuity ...

Q: Compute internal rate of return (IRR), payback period, and profitability index (PI) for each project...

A: Calculate free cashflows as shown:

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: a)Formula for calculation of EOQ:

Q: Let C be the price of a call option to purchase a security whose present price is S. Explain why C ...

A: Options are derivative contracts and the amount that we pay to buy an option is called premium.

Q: Upton Umbrellas has a cost of equity of 12.6 percent, the YTM on the company's bonds is 5.7 percent,...

A: Calculating the market value of debt and equity. We have,(a) Market value of debt = Book value of de...

Q: A bank's loan rate for a machine is 9%. Determine the effective rate on the basis of the compounding...

A: The effective interest rate or the effective annual rate (EAR) is the actual rate paid or earned on ...

Q: I was asked to repost the question. It is as follows: Assume a security follows a geometric Brownia...

A: In mathematical finance, risk neutral is a probability measure used to support in pricing financial ...

Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in e...

A: Calculation of Increase in Project NPV:

Q: Assume the zero-coupon yields on default-free securities are as summarized in the following table...

A: Calculation of coupon value: