pattikake1959
Nov 13, 2009, 11:35 PM
6. Andrew Thompson owns 65,000 shares of Beta Enterprises. His shares have a total market value of $1,820,000. In total, Beta Enterprises has 250,000 shares outstanding. Each share is entitled to one vote under the straight voting policy of the firm. The next election is in three months at which time three directors are up for election. How much more must Andrew invest in this firm to guarantee that he is elected to the board?
A. $0
B. $513,361
C. $625,000
D. $1,680,028
E. $1,750,000
this is what I did but I'm not gettinthe rigth answer how I came up with the $28 was by 1,820,000/65,000=28
1/(n+1)
1/(3+1)=1/4=25 or 25%
25% of 250,000 shares =10,000+1 0r10,001
=10,001*28
$280,028 this is not a choice
A. $0
B. $513,361
C. $625,000
D. $1,680,028
E. $1,750,000
this is what I did but I'm not gettinthe rigth answer how I came up with the $28 was by 1,820,000/65,000=28
1/(n+1)
1/(3+1)=1/4=25 or 25%
25% of 250,000 shares =10,000+1 0r10,001
=10,001*28
$280,028 this is not a choice