Question

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. The company has 445,000 shares outstanding, and the stock currently sells for $54, If there are four seats in the current election, how much will it cost you to buy a seat?

Answer 1

It will cost you $12,015,054 to buy a seat.

Step-by-step explanation:

cost to buy a seat = number of shares to be owned*cost per share

= (one half of outstanding shares + 1)*cost per share

= (445,000/2 + 1)*$54

= $12,015,054

Therefore, It will cost you $12,015,054 to buy a seat.