Answer:
2,000,001 shares
Explanation:
To solve this question, we need to use the cumulative voting formula:
X = [(S x N) / (D + 1)] + 1
-
X = minimum number of shares that must be owned = ?
-
S = total outstanding shares = 10,000,000
-
N = number of directors we want to elect = 1
-
D = total number of directors to be elected = 4
X = [(10,000,000 x 1) / (4 + 1)] + 1 = (10,000,000 / 5) + 1 = 2,000,001
There are two voting procedures used to elect the members of a board of directors: the straight voting method and the cumulative voting method.
- The straight voting method favors majority stockholders since they receive one vote per stock per open seat which means that someone that has 50% plus 1 stock can actually get all the board members elected.
- Cumulative voting system assigns one vote per stock for the whole election, that means that a board member could be elected with 20% plus 1 vote. This voting system favors minority shareholders since someone with 50% plus 1 vote could only get 2 members elected by himself/herself.
Answer:
False
Explanation:
The reputation can be permanently harmed when a conflict of interest is possible.
Answer:
A. policy
Explanation:
A deliberate plan or course of action chosen by an individual or a group of people intended to deal with a problem, influence and determine decisions, actions, and other matters is known as policy.
Answer: Option C
Explanation:
A. Bonds can be called at discount or premium depending upon the interest rate availing in market and the coupon interest rate.
B. In case of bearer bonds no transactions and ownership records are maintained.
C. Indenture is the contract between issuer and holder specifying the duties and obligations of issuer and the rights of holders.
D. Collateralized bonds are backed by a pool of assets while debentures are unsecured bonds .
E. A bondholder can have the right to determine it only when he have the put option with him otherwise the right to call bond lies with the issuer.
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
