Laura Lynn Owns 20,700 Shares of Global Exporters

question 49

Multiple Choice

Laura Lynn owns 20,700 shares of Global Exporters.Her shares have a total market value of $787,270.In total,the firm has 65,000 shares outstanding.Each share is entitled to one vote under the straight voting policy of the firm.The next election is in four months at which time two directors are up for election.How much more must Laura Lynn invest in this firm to guarantee that she is elected to the board?

• A)$0
• B)$396,554
• C)$448,820
• D)$498,406
• E)$547,478

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Definitions:

Flexible Cash

Funds that are readily available for use without restrictions or conditions, allowing for immediate allocation or investment.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and the bid-ask spread.

Total Costs

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.