Answer:
We must spend $575,023 to acquire sufficient shares to guarantee your election to the board
Explanation:
To calculate the number of shares, the below formula will be used
Number of shares = [(S * X) / (D + 1)] + 1
S = Total number of shares, X = Number of seats you want to leave, D = Total number of seats
Number of shares = (175,000 * 1) / (4 + 1) + 1
Number of shares = (175,000 / 5) + 1
Number of shares = 35,000 + 1
Number of shares = 35,001
We control 35,001 if we wants to guarantee election to the board.
The additional no of shares that we need to buy is as calculated below as we already owns 10,000 shares
Cost = (Number of shares required - Number of shares already owned) * Price per share
Cost = (35,001 shares - 10,000 shares) * $23
Cost = 25,001 shares * $23
Cost = $575,023
Thus, it will cost us $575,023 to guarantee that we will be elected to the board.
