Question

You want a seat on the board of directors of Zeph, Inc. The company has 205,000 shares of stock outstanding and the stock sells for $78 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how much will it cost you to guarantee that you will be elected to the board?

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Add-Ins View - 2x Σ AutoSum : A Dr General File Home Insert Page Layout Formulas Data Review % Cut Calibri -11AA = = = Ea Copy Paste B I U - D A Format Painter Clipboard Font Wrap Text Merge Merge & Center Center SF $ - % % 4:0 .00 8.9 Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill Clear Sort & Filter Editing Find & Select Alignment Number Cells BY404 BW BX BY BZ CA CB CCCD 387 388 389 390 391 392 393 394 395 UNDER CUMULATIVE VOTING NO OF SHARES NEEDED (%) = 1/(1+ NO OF DIRECTORS TO BE APPOINTED) NO OF SHARES NEEDED (%) = 1/(1+5) = 1/6 = 16.6667% 396 TOTAL NO OF SHARES 16.66667% SHARES REQUIRED = 205000 34167 397 398 399 SO YOU NEED TO HAVE = 34167 + 1 ANSWER TOTAL COST = 34168 X 78 = 34168 SHARES 2665078 400 401 402 403 404 405 N Red H convexity DGM betaport future INDEX INTL CAP BUD SANDRINE LEASING PV, FV, ANNUITY DIR right clean KE CAPM UTILITY, SHARPE, beta ferences YIELD bond portfolio WACC RI O BOJ 130% - 0 _+ 199 * 10 ENG 29-11-2019 .