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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

Respuesta :

Tundexi

Answer:

77,501 shares

Explanation:

Under cumulative voting, Number of shares needed (%) = ]Total number of shared * 1/(1 + Number of directors to be appointed)] + 1

Number of shares needed = [387,500*1/(4+1)] + 1

Number of shares needed = 77500 + 1

Number of shares needed = 77,501

So, the number of shares i need to own is 77,501 units

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