After successfully completing your corporate finance class, you feel the next ch

Question

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If Schenkel has 445,000 shares outstanding, and the stock currently sells for $54, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations.)

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If Schenkel has 445,000 shares outstanding, and the stock currently sells for $54, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations.)

Explanation / Answer

To win in straight voting, one needs 51% shares.Therefore to buy a seat, It will cost me,

(51% of 445,000 shares)* $54 = $12,255,300

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