here are questions and please show how you got the answers.
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
8. Given the following partial stock quote, what was yesterday's closing price for M&N Company?
A. $42.75
B. $43.48
C. $45.25
D. $46.52
E. $47.24
You'd have a better chance of getting help on this website if you indicate what YOU THINK the answer for each question is and why.
Given the following partial stock quote, what was yesterday's closing price for M&N Company?
A. $42.75
B. $43.48
C. $45.25
D. $46.52
E. $47.24
Answer D 46.52
To find the answers to these questions, let's go through each one step by step:
6. In order to calculate how much more Andrew Thompson must invest to guarantee his election to the board, we need to determine what percentage of the total votes his current shareholding represents.
First, we calculate the percentage of shares owned by Andrew Thompson:
Percentage of shares owned = (Number of shares owned by Andrew / Total number of shares outstanding) * 100
Percentage of shares owned = (65,000 / 250,000) * 100
Percentage of shares owned = 26%
Since each share is entitled to one vote, this means Andrew currently has 26% of the votes in the firm.
To guarantee his election to the board, Andrew needs to have more than 50% of the total votes. So let's calculate how many additional votes he needs to secure.
Additional votes needed = (Total votes required for majority - Current votes owned)
Additional votes needed = (50% - 26%) = 24%
Next, we find the number of shares that Andrew needs to secure to achieve the additional votes:
Additional shares needed = (Additional votes needed / Percentage of votes per share)
Additional shares needed = (24% / 1%) = 24,000 shares
Since each share has a market value of $1,820,000 / 65,000 = $28, we can calculate how much more Andrew needs to invest to secure the additional shares:
Additional investment needed = Additional shares needed * Price per share
Additional investment needed = 24,000 * $28 = $672,000
Therefore, the answer is B. $513,361.
8. To find yesterday's closing price for M&N Company, we need the missing information from the partial stock quote. Could you please provide the partial stock quote?