An election is being held to fill three seats on the board of directors of a firm in which you hold stock. The company has 8,200

Question

2 years ago

5

An election is being held to fill three seats on the board of directors of a firm in which you hold stock. The company has 8,200

shares outstanding. If the election is conducted under cumulative voting and you own 430 shares, how many more shares must you buy to be assured of earning a seat on the board?

Business

1 answer:

Mademuasel [1] · Answer 1 · 2022-05-22T17:27:47+03:00

Answer:

1621 Shares

Explanation:

Calculation to determine how many more shares must you buy to be assured of earning a seat on the board

First step is to determine the shares needed

Shares needed = [1/4 (8,200) + 1]

Shares needed= 2050 + 1

Shares needed= 2051

Now let determine how many more shares must you buy

Buy =2051 -430

Buy= 1621 shares

Therefore how many more shares must you buy to be assured of earning a seat on the board will be 1621 Shares