Regarding the Election of Directors

question 61

Multiple Choice

Regarding the election of directors:

• A) under the Revised Act, directors are elected by a majority of the votes.
• B) cumulative voting is a right of shareholders in all states.
• C) cumulative voting permits minority shareholders to obtain majority representation on the board.
• D) under straight voting, shareholders owning a majority of the voting shares can always elect the entire board of directors.

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Definitions:

P/E Ratio

The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the market value per share by its earnings per share.

EPS

Earnings Per Share, a measure of a company's profitability that is calculated by dividing its net income by the number of outstanding shares.

Stock Repurchase

The process of a corporation repurchasing its own stocks from the market to potentially boost the value of the remaining stocks.

Excess Cash

Additional cash held by a business that exceeds its operational and investment needs.