There are 5 seats open on the board of directors of Alpha, Inc. Jason wants to be positive that he can be elected to one of these positions. Alpha uses straight voting. There are 1,500 shares of Alpha stock outstanding. Twenty% of the shares are owned by Midge, 30% are owned by Peter, 10% are owned by Jeff, 25% are owned by Jason and the rest are owned by Edward. How many additional shares of stock must Jason buy to ensure that he wins a seat?

Question

Quizplus · Accepted Answer

Jason needs to own more than 20% of the shares to win a seat. He currently owns 25% of the shares, so he needs to buy 20% - 25% = -5% of the shares. -5% of 1,500 shares is -75 shares. Since Jason cannot buy a negative number of shares, he needs to buy 75 more shares to ensure that he wins a seat.

There Are 5 Seats Open on the Board of Directors