Question

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 person voting for you. The company has 400,000 shares outstanding, and the stock currently sells for $45, If there are four seats in the current election, how much will it cost you to buy a seat

Answer 1

Answer:

$9,000,045

Explanation:

You will need more than HALF of the shares to win.

400,000 shares are there

Half of it:

400,000/2 = 200,000 shares

You would need 1 more to it, so:

Shares needed = 200000 + 1 = 200,001 shares

Total Cost would be the number of shares needed multiplied by the price of each share.

So,

Total Cost = 200,001 * 45 = $9,000,045