Maureen,a Shareholder of Metra,Inc

question 32

Multiple Choice

Maureen,a shareholder of Metra,Inc.,was unhappy with how the corporation was being managed.Maureen wanted to be a member of Metra's board of directors.Which statement is correct?

• A) If Maureen owns at least 1 percent or $2,000 of Metra's stock, she can require the company to include her name as a candidate for the board of directors in its proxy statement.
• B) If Maureen has a proper purpose, she can require the company to include her name as a candidate for the board of directors in its proxy statement.
• C) If Maureen can show cause, she can require the company to include her name as a candidate for the board of directors in its proxy statement.
• D) Maureen cannot require that the company put her name in the proxy statement; she must prepare and distribute her own proxy.

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Definitions:

Payback Method

Payback Method is a capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Investments

Assets or items acquired with the intention of generating income or appreciation over time, including stocks, bonds, real estate, or other vehicles.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.

Terminal Value

An estimate of a project's or company's value at the end of a forecast period, extending beyond the period of explicit cash flow projections.