FINC 350-A Week 7 Homework

# FINC 350-A Week 7 Homework - Question1 1/1point Problem...

This preview shows pages 1–3. Sign up to view the full content.

Question 1 1 / 1 point

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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: 4 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 outstanding and 600,000 shares of common stock. Question 2
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 09/30/2011 for the course FINC A taught by Professor Jerrypatton during the Spring '11 term at Columbia College.

### Page1 / 5

FINC 350-A Week 7 Homework - Question1 1/1point Problem...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online