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15 February, 07:51

You want a seat on the board of directors of Four Keys, Inc. The company has 265,000 shares of stock outstanding and the stock sells for $76 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

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  1. 15 February, 08:14
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    44,167.67 shares

    Explanation:

    Given that

    Number of shares of stock outstanding = 265,000

    Sale value per share of stock = $76

    Number of seat for election = 5

    So by considering the above information, the number of shares needed by using the cumulative voting is

    = {shares outstanding : (number of seats + 1) + 1}

    = { (265,000 shares : (5 + 1) + 1}

    = 44,167.67 shares
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