Liabilitiesl 400000 casha 400000 repaidliabilities

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 100,000 + $20,000) – [$90,000 from entry (2) + $50,000 from entry (8)] = $375,000 [from entry (4)] – $125,000 [from entry (5)] – $66,640 [from entry (7)] – $16,660 [from entry (10)] P12–13 a. Only investors of shares that are both issued and outstanding are eligible to vote to elect a board of directors. If the current board could reduce the number of shares held by investors other than themselves, then they would control a greater proportion of the shares outstanding and could decrease the probability that Vadar, Inc., would take over Edmonds. One way that the board could consolidate its ownership position is to reacquire the company's common stock from other investors. P12–13 Concluded If the current board could consolidate its ownership so that it controlled 50% plus one share of the outstanding shares, they could completely block Vadar, Inc.'s takeover attempt. In this particular case, the current board members own 140,000 shares (35% 400,000 shares outstanding). To allow the board to completely control the company without the board members personally acquiring...
View Full Document

This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

Ask a homework question - tutors are online