Question

If you own 1,000 shares of common stock of a firm and there are five directors being elected, what is the maximum number of votes you can cast for a particular director under cumulative voting

Answer 1

the maximum number of votes that cast for a specific director under cumulative voting is 5,000

Step-by-step explanation:

The computation of the maximum number of votes that cast for a specific director under cumulative voting is as follows;

= Number of shares of common stock × number of directors

= 1,000 shares × 5 directors

= 5,000

hence, the maximum number of votes that cast for a specific director under cumulative voting is 5,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered