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sertanlavr [38]
3 years ago
14

You want a seat on the board of directors of Four Keys, Inc. The company has 265,000 shares of stock outstanding and the stock s

ells for $76 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board
Business
1 answer:
Mila [183]3 years ago
5 0

Answer:

44,167.67 shares

Explanation:

Given that

Number of shares of stock outstanding = 265,000

Sale value per share of stock = $76

Number of seat for election = 5

So by considering the above information, the number of shares needed by using the cumulative voting is

= {shares outstanding ÷ (number of seats + 1) + 1}

= {(265,000 shares ÷ (5 +1) +1}

= 44,167.67 shares

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