Suppose you own 500 shares of Biogen common stock. Two directors are to be elected. Since the ﬁrm uses cumulative voting, you can cast as many as _____________ votes for a single director.

Question

Quizplus · Accepted Answer

In cumulative voting, you can allocate your total votes (number of shares times the number of directors to be elected) in any manner you choose. Here, you have 500 shares and 2 directors to elect, so you have 500 x 2 = 1,000 votes, which can all be cast for a single director.

Suppose You Own 500 Shares of Biogen Common Stock