Question

Betsy Ross owns 930 shares in the Hanson Fabrics Company. There are 16 directors to be...

Betsy Ross owns 930 shares in the Hanson Fabrics Company. There are 16 directors to be elected, and 34,000 shares outstanding. The firm has adopted cumulative voting.

a. How many total votes can be cast? (Do not round intermediate calculations and round your answer to the nearest whole number.)

b. How many votes does Betsy control? (Do not round intermediate calculations and round your answer to the nearest whole number.)

c. What percentage of the total votes does she control? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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Answer #1

a. How many total votes can be cast?

Total votes that can be cast

= Number of outstanding shares × Number of directors

= 34,000 x 16

= 544,000 votes

b. How many votes does Betsy control?

Number of votes that Betsy controls

= Shares Owned x No of Directors

= 930 x 16

= 14,880

c. What percentage of the total votes does she control?

Percentage of the total votes that Betsy she controls

= {Number of votes that Betsy controls / Total votes that can be cast} x 100

= {14,880 / 544,000} x 100

=2.74%

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