If there are 10 directors to be elected and a shareholder owns 120 shares, calculate the maximum number of votes that he or she cancast for a favorite candidate under each of the voting methods.MaximumNumber of Votesa. Majority votingb. Cumulative voting

Cumulative voting is the method which allows the shareholder to use all the shares for all the seats…

Answered: If there are 10 directors to be elected…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

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Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 27P

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If 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.
There are 3 directors seats up for election. If you own 1,000 shares of stock and you can cast 3,000 votes for a particular director, this is illustrative of:a. multiple voting.b. sequential voting.c. absolute priority voting. d. cumulative voting. e. straight voting. choose one
If cumulative voting is permitted: A. the total number of votes a shareholder has is equal to the number of shares owned. B. the total number of votes a shareholder has is equal to the number of shares owned times the average number of years the shareholder has owned the shares. C. the total number of votes a shareholder has can be calculated as the number of shares owned times the number of directors to be elected. D. the total number of votes a shareholder has is equal to the number of shares times the number of board meetings the shareholder has attended. E. None of these.
A 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.
You 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.
Rho 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?
you 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 board
Given that there are 4,000,000 shares outstanding in Miller Corp., how many shares will be required for a minority group of stockholders to elect two of the nine members on the board of directors? (Assume cumulative voting is required.) A. 888,889 B. 1,090,910 C. 800,001 D. 1,000,001
ieko holds 50 out of 180 shares of Natural Gas, Inc. Natural Gas uses cumulative voting to elect directors. At the annual shareholder meeting, the shareholders must vote for 5 new directors. This means that a. Mieko has a total of 180 votes which has may cast all on one candidate or split them among several nominees. b. Mieko has a total of 250 votes which he may cast all on one candidate or split them among several nominees. c. Meiko has a total of 50 votes which he may cast all on one candidate or split them among several nominees. d. Mieko has a total of 200 votes which he may cast all on one candidate or split them among several nominees.
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?
Carl Hubbell owns 6,001 shares of the Piston 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 Piston Corp. utilizes cumulative voting. Can Mr. Hubbell elect himself to the board when the vote to elect 12 directors is held next week? (Use Formula 17-2 to determine if he can elect one director.)
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 shares

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If 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 voting