Question

a company has announced a tender offer for its shares at $50. the issuer wants to purchase a minimum of 100,000 shares, up to a maximum of 1,000,000 shares. if 80,000 shares are tendered, how much will an investor receive if he has tendered 1,000 shares?

Answer 1

A minimum of three investors is needed to change The Darkroom Windowshade Company's top management, but Investor 1 and Investor 2 cannot always get their way even if they vote together, as they control less than the majority of shares.

Step-by-step explanation:

To determine the minimum number of investors needed to change the company's top management at The Darkroom Windowshade Company, we first need to figure out the majority of shares required for a vote. A majority is achieved when more than 50% of the shares are in agreement, which in this case would be over 50,000 shares because the company has 100,000 shares outstanding.

Together, Investor 1 and Investor 2 have 38,000 shares. Since this is less than the majority, they would need at least one more investor to join them to reach a majority. If Investor 3 joins them, they will have a combined total of 53,000 shares, meeting the requirement to change the company's top management. Therefore, a minimum of three investors is needed for this action.

However, Investor 1 and Investor 2 would not always be certain of getting their way because even together they control only 38% of the company's shares, and a majority of more than 50% is required to guarantee the outcome of votes.