Laura Lynn owns 20,700 shares of Global Exporters. Her shares have a total market value of $787,270. In total, the firm has 65,000 shares outstanding. Each share is entitled to one vote under the straight voting policy of the firm. The next election is in four months at which time two directors are up for election. How much more must Laura Lynn invest in this firm to guarantee that she is elected to the board?

$0

$396,554

$448,820

$498,406

$547,478

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Deanna HettingerLv2

28 Sep 2019

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An election is being held to fill four seats on the board of directors of a firm in which you hold stock. The company has 7,500 shares outstanding. If the election is conducted under cumulative voting and you own 360 shares, how many more shares must you buy to be assured of earning a seat on the board?

You are interested in purchasing enough number of shares in ABC manufacturing so that you can be guaranteed a seat on the board of directors when the next annual shareholderâs meeting is held. ABC manufacturing currently has 10,000 shares outstanding. The corporation has not paid any dividends last year, but is expected to pay an annual dividend of $2.00/share at the end of year 2. During years 3-6 the company is expected to grow its dividends by 15% a year. Starting year 7, the company is expected to pay dividends that are growing only 4%/year from then on.

MUST SHOW WORK. MUST INCLUDE FORMULAS

1. Calculate the dividends the company will pay during years 2-7.

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4. Assume that the board of directors have 12 members. How much money you need to spend now, in order to guarantee that you have a seat on the board of the company uses straight voting in the election for the board.

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If Schenkel has 500,000 shares outstanding and the stock currently sells for $38, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations.)

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Requirement 2:

Assume that Schenkel uses cumulative voting and there are four seats in the current election; how much will it cost you to buy a seat now? (Do not round intermediate calculations.)

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