Question

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 many directors can Mr. Clark be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors b. How many directors can Ms. Ramsey and her friends be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors

Answer 1

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LI C w ENG 05:13 30-07-2020 99+ 31 Х X416 . P Q R T S N U V w X Y AA AB AC AD 398 399 400 MIDLAND 401 a TOTAL NO OF SHARES = 51001 + 61001 + 24998 = 137000 402 NO OF DIRECTORS THAT CAN BE ELECTED = (SHARES OWNED - 1) X (TOTAL NO OF DIRECTORS TO BE ELECTED + 1)/TOTAL NO OF SHARES OUTSTANDING 403 NO OF DIRECTORS THAT CAN BE ELECTED = (51001 - 1) X (12 + 1)/ 137000 = 4.839416 404 NO OF DIRECTORS THAT CAN BE ELECTED = 4 405 406 b NO OF DIRECTORS THAT CAN BE ELECTED = (61001 - 1) X (12 + 1)/ 137000 = 5.788321 407 NO OF DIRECTORS THAT CAN BE ELECTED = 5 408 409 C-1 NO OF DIRECTORS THAT CAN BE ELECTED = (51001 +24998- 1) X (12 + 1)/ 137000 = 7.211489 410 NO OF DIRECTORS THAT CAN BE ELECTED = 7 411 412 C-2 YES, HE WILL CONTROL THE BOARD 413 414 d UN COMMITTED VOTES = 137000 - 77001-57001 = 2998 415 NO OF DIRECTORS THAT CAN BE ELECTED = (57001 +(2998/2)- 1) X (9 + 1)/ 137000 = 4.27 NO OF DIRECTORS THAT CAN BE ELECTED = 4 417 418 416 419 420 421 DGM beta VAR port future INDEX WACC HEDGE INTL CAP BUD Sheet11 SANDRINE LEASING PORTFOLOQ DIR right clean ...