You want a seat on the board of directors of Four Keys, Incorporated. The company has 240,000 shares of stock outstanding and the stock sells for $79 per share. There are currently 4 seats up for election. The company uses straight voting. How many shares do you need to guarantee that you will be elected to the board?

Multiple Choice

108,001 shares

84,001 shares

60,000 shares

120,001 shares

48,001 shares

To solve this problem, let's break down the requirements given that the company uses **straight voting**. In straight voting, each share of stock grants the shareholder one vote per seat on the board, and each seat is voted on individually.

To guarantee election to one of the four seats, you need **more than half of the total votes cast** for a single seat, as this ensures you'll have a majority for at least one seat, effectively securing it.

### Step-by-Step Calculation:

1. **Total Shares Outstanding**: 240,000 shares.

2. **Minimum Shares Required for a Majority**: To guarantee election, you need more than half of the shares (50% + 1 share) for at least one seat. So:
   \[
   \text{Majority shares needed} = \frac{240,000}{2} + 1 = 120,000 + 1 = 120,001 \text{ shares}
   \]

Therefore, the correct answer is:
- **120,001 shares**.

This number of shares will guarantee you enough votes to secure a seat on the board.

### Final Answer:
**120,001 shares**.

Would you like further explanation on straight voting or have questions about similar topics?

---

#### Related Questions:
1. What is the difference between straight voting and cumulative voting?
2. How does cumulative voting change the minimum shares needed for election?
3. If there were 5 seats up for election, would the required shares to guarantee election change?
4. How would a stock price increase or decrease affect the strategy to gain board seats?
5. What strategies could a shareholder use to maximize influence with fewer shares?

#### Tip:
In straight voting, to guarantee a win for a single seat, securing over 50% of the shares is essential.

You want a seat on the board of directors of Four Keys, Incorporated. The company has 240,000 shares of stock outstanding and the stock sells for $79 per share. There are currently 4 seats up for election. The company uses straight voting. How many shares do you need to guarantee that you will be elected to the board?

Understand how many shares are required to secure a seat on the board in a straight voting system. This solution walks through calculating the majority of shares needed with 240,000 shares outstanding, and a stock price of $79. Ideal for high school students and those studying corporate finance or voting systems.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation