Management Usually Opposes Cumulative Voting Because This Type of Voting

question 89

Multiple Choice

Management usually opposes cumulative voting because this type of voting _____.

• A) is over twice as likely as majority voting to result in a proxy fight
• B) is more complicated than majority voting and takes longer to process
• C) often leaves the stockholders who hold minority viewpoints with no representation on the board of directors
• D) makes it easier for stockholders with minority viewpoints to elect sympathetic board members

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Definitions:

IRR

The Internal Rate of Return is a metric used in financial analysis to estimate the profitability of potential investments, indicating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

WACC

WACC stands for Weighted Average Cost of Capital, a calculation that reflects the overall cost of a company's securities, including debt and equity, used for investment appraisal.

WACC

This metric, known as the Weighted Average Cost of Capital, calculates a business's cost of capital by assigning weights proportionally to each type of capital.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.