There Are Three Seats on the Board of Directors of MMT,Inc.,up

question 23

Multiple Choice

There are three seats on the board of directors of MMT,Inc.,up for election.The firm has 175,000 shares of stock outstanding and uses cumulative voting.Each share is granted one vote per open seat.You currently own 10,000 shares that have a market value of $23 each.How much must you spend,if anything,to acquire sufficient shares to guarantee your election to the board? Assume no one else votes for you.

• A)$1,111,690
• B)$776,273
• C)$830,814
• D)$1,006,273
• E)$688,230

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Definitions:

Fish Fillet

A piece of fish that has been cut or sliced away from the bone, often prepared as a food item.

Excludable

A property of a good or service whereby it is possible to prevent people from using it if they have not paid for it or met specific conditions.

Club Good

A type of good that is excludable but non-rivalrous, meaning people can be prevented from using it, but one person's use does not diminish availability for others.

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Professionals who assess the economic pros and cons of different projects or decisions to determine their financial viability.