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In: Finance

You want a seat on the board of directors of Four Keys, Inc. The company has...

You want a seat on the board of directors of Four Keys, Inc. The company has 215,000 shares of stock outstanding and the stock sells for $72 per share. There are currently 4 seats up for election. If the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board?

Solutions

Expert Solution

Shares needed = [# of shares outstanding/(n+1)]+1, where
n = # seats open for election.
Hence, shares needed = (215000/5)+1 = 43,001
Answer: 43,001 shares

jeff jeffy answered 1 year ago
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