Teldar Paper (TP) has 627,052 shares of stock outstanding with a current market value of $77.02 a share. You own 78,798 of those shares. Next month, the election will be held to select three new members to the board of directors. The firm uses a straight voting system. How much additional money do you need to spend to guarantee that you will be elected to the board of TP assuming that everyone else votes for one of the other candidates. Round your answer to the nearest dollar.
| Total number of share = | 627,052 | |
| 50% of share = | 313526 | |
| a | Required share for assuming 1 director = | 313527 |
| 313526+1 | ||
| b | Existing number of share = | 78,798 |
| c=a-b | New share puchase required = | 234,729 |
| d | Price per share = | 77.02 |
| e=d*c | Additional $ investment required = | $ 18,078,828 |
| ans = | $ 18,078,828 |
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