Under traditional method, number of votes = number of shares. She may cast 1,000 votes for herself.
Under cumulative method, number of votes = number of shares * number of seats up for election.
Number of votes = 1,000 * 4 = 4,000. She may cast 4,000 votes for herself.
Sharon Bohnette owns 1,000 shares of Northern Chime Company. There are four seats on the board...
A company has three open seats on its board of directors. There will be a single election to determine the winner of all open seats. As the owner of 50,000+(5,000) shares of stock, you will receive one vote per share for each open seat. You decide to cast all of your votes for a single candidate. a. What is this type of voting called? What is the number of votes you can cast? b. With this type of voting, suppose the company...
Mr. Michaels controls proxies for 40,000 of the 75,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining 35,000 shares. There are seven board members to be elected and cumulative voting rules apply. Michaels does not understand cumulative voting and plans to cast 100,000 of his 280,000 (40,000 × 7) votes for his brother-in-law, Scott. His remaining votes will be spread evenly for three other candidates. How many directors can Baker elect if Michaels...
A firm has four empty seats to fill on its board. The total number of shares outstanding is 473,000 shares and Annan owns 90,000 shares. Can Annan guarantee that he will get on the board, if cumulative voting method is used?
A firm has four empty seats to fill on its board. The total number of shares outstanding is 473,000 shares and Annan owns 90,000 shares. Can Annan guarantee that he will get on the board, if cumulative voting method is used? A. No, he doesn't have enough shares to guarantee membership on the board. B. No, he needs a minimum of 99,601 shares to guarantee membership on the board. C. Yes, he owns more than enough number of shares. D....
Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 52,001 shares. Ms. Ramsey and her friends on the board control 62,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How...
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only Individual voting for you. a. If the company has 560,000 shares outstanding and the stock currently sells for $32, how much will it cost you to buy a seat if the company uses straight voting? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g.,...
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you. a. If the company has 525,000 shares outstanding and the stock currently sells for $38 how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,...
Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 54,001 shares. Ms. Ramsey and her friends on the board control 64,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How...
Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 55,001 shares. Ms. Ramsey and her friends on the board control 65,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting. a. How...
Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 51,001 shares. Ms. Ramsey and her friends on the board control 61,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting, a. How...