FINA 395 Chapter Notes - Chapter 15: Callable Bond, Cumulative Voting, Weighted Arithmetic Mean
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15. 1 if the company uses straight voting, the board of directors is elected one at a time. You will need to own one-half of the shares, plus one share, in order to guarantee enough votes to win the election. So, the number of shares needed to guarantee election under straight voting will be: Shares needed = (600,000 shares / 2) + 1. If the company uses cumulative voting, the board of directors are all elected at once. Percent of stock needed = 1 / (7 + 1) Percent of stock needed = 0. 1250 or 12. 50% Number of shares to purchase = (600,000 0. 1250) + 1. And the total cost to you will be the shares needed times the price per share, or: 15. 2 if the company uses cumulative voting, the board of directors are all elected at once. So, the number of shares you need is: Number of shares to purchase = (5,800 0. 25) + 1.