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Russell United has 28,500 shares of stock outstanding and has two open seats on its board of directors. Each share of common stock is granted one vote. How many additional votes are required to guarantee a seat on the board if the company were to use straight voting rather than cumulative voting

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abiolataiwo2015

Answer:

4,750

Explanation:

Calculation for How many additional votes are required to guarantee a seat on the board

First step is to Calculate for STRAIGHT VOTING

Using this formula

Additional Votes= ((Shares of stock outstanding/2)+1)

Let plug in the formula

Additional Votes=((28,500/2)+1)

Additional Votes=14,251

Second step is to calculate for CUMULATIVE VOTING

Using this formula

Additional Votes= ((Shares of stock outstanding/(Number of seats +1))+1)

Let plug in the formula

Additional Votes=((28,500/(2 +1))+1)

Additional Votes=9,501

Last step is to calculate How many additional votes are required

Using this formula

Additional votes =STRAIGHT VOTING additional vote-CUMULATIVE VOTING additional Votes

Let plug in the formula

Additional votes = 14,251-9,501

Additional votes = 4,750

Therefore How many additional votes are required to guarantee a seat on the board if the company were to use straight voting rather than cumulative voting is 4,750

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