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Finance hwork week 7

# Finance hwork week 7 - Written May 2 2011 10:15 AM May 6...

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Written: May 2, 2011 10:15 AM - May 6, 2011 8:09 AM Submission View Your quiz has been submitted successfully. Question 1 0 / 1 point Problem 17-11 Mr. Michaels controls proxies for 38,000 of the 70,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining 32,000 shares. There are seven board members to be elected and cumulative voting rules apply. Michaels does not understand cumulative voting and plans to cast 100,000 of his 266,000 (38,000 × 7) votes for his brother-in- law, Scott. His remaining votes will be spread evenly for three other candidates. How many directors can Baker elect if Michaels acts as described above? Use logical numerical  analysis rather than a set formula to answer the question. Baker has 224,000 votes (32,000 × 7). Answer: 5 Information Problem 17-19 National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of \$9 per share. The company has been losing money and has not paid preferred dividends for the last five years. There are 300,000 shares of preferred stock

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Finance hwork week 7 - Written May 2 2011 10:15 AM May 6...

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