Question

The shareholders of the Stackhouse Company need to elect seven new directors. There are 850,000 shares outstanding currently trading at $45 per share. You would like to serve on the board of directors; unfortunately no one else will be voting for you. How much will it cost you to be certain that you can be elected if the company uses straight voting

Answer 1

Answer:

The correct answer is "$19,125,045".

Explanation:

According to the question,

Number of shares,

= 850,000

Per share,

= $45

The shares needed will be:

= $(\frac{850,000}{2})+1$

= $425000+1$

= $425,001$

hence,

The total cost will be:

= $425,001\times 45$

= $19,125,045$ ($)