A Firm Has Four Open Positions on Its Board of Directors.How

question 14

Multiple Choice

A firm has four open positions on its board of directors.How many shares do you need to own to guarantee your own election to the board if the firm has 387,500 shares of stock outstanding and uses cumulative voting? Each share is granted one vote.

• A)33,334 shares
• B)77,501 shares
• C)75,251 shares
• D)70,501 shares
• E)96,876 shares

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Definitions:

Business Bank Loan

A specific type of loan intended for business expenditures, provided by a bank to a company, with agreed repayment terms and interest rates.

Compounded Semi-annually

A method where interest earnings are calculated and added to an account's balance every six months, contributing to the compounded growth of an investment.

Compounded Quarterly

Related to the calculation of interest which is added to the principal amount at the end of every quarter, or every three months.

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.