a. George Kelly wishes to elect 5 of the 13 directors on the Data Processing Corp. board. There are 98,000 shares of the company’s stock outstanding. How many shares will be required to accomplish this goal?

b. Jennifer Wallace owns 60,001 shares of stock in the Newcastle Corp. There are 12 directors to be elected with 195,000 shares outstanding. How many directors can Jennifer elect?

Question

a. George Kelly wishes to elect 5 of the 13 directors on the Data Processing Corp. board. There are 98,000 shares of the company’s stock outstanding. How many shares will be required to accomplish this goal?

b. Jennifer Wallace owns 60,001 shares of stock in the Newcastle Corp. There are 12 directors to be elected with 195,000 shares outstanding. How many directors can Jennifer elect?

Accepted Answer

[latex] \begin{aligned} ext { a. Shares required } &=\frac{( ext { Number of directors desired }) imes( ext {Total number of shares outstanding})}{ ext { Total number of directors to be elected }+1} \ &=\frac{5 imes 98,000}{13+1}+1 \ &=\frac{490,000}{14}+1 \ &=35,000+1=35,001 ext { shares } \end{aligned} [/latex]

[latex] \begin{aligned} ext { b. Number of directors that can be elected } &=\frac{( ext {Shares owned-1 }) imes( ext {Total number of directors to be elected +1})}{ ext { Total number of shares outstanding }} \ &=\frac{(60,001-1) imes (12+1)}{195,000} \ &=\frac{60,000 imes 13}{195,000}=\frac{780,000}{195,000}=4 ext { directors } \end{aligned} [/latex]

Question 17.1: a. George Kelly wishes to elect 5 of the 13 directors on the...

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