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?

Question

Quizplus · Accepted Answer

Investment needed = [(0.50 × 65,000) + 1 - 20,700] × ($787,270/20,700) = $448,820

Laura Lynn Owns 20,700 Shares of Global Exporters