55.3k views
4 votes
Face 2 Face Corporation reports 120 outstanding shares, 600 authorized shares, and 60 shares of treasury stock. How many shares -are issued?

User Betjamin
by
7.6k points

1 Answer

1 vote

Final answer:

Face 2 Face Corporation has 180 issued shares, calculated by adding outstanding and treasury stocks. The Darkroom Windowshade Company scenario requires more than 50% of shares to change top management, and Investors 1 and 2 together do not hold a majority.

Step-by-step explanation:

Face 2 Face Corporation has 120 outstanding shares and 60 shares of treasury stock. To calculate the number of issued shares, we need to add the number of outstanding shares to the treasury stock. Thus, the issued shares equals 120 shares outstanding + 60 shares of treasury stock = 180 issued shares.

In a scenario like the Darkroom Windowshade Company with 100,000 shares of stock outstanding, to change the company's top management a majority vote is required. This means more than 50% of the voting power is needed. Investor 1 with 20,000 shares and Investor 2 with 18,000 shares together have 38,000 shares. If they vote together, they control 38% of the company, which is less than the required 50% plus one vote for a majority.

Therefore, if Investors 1 and 2 agree to vote together, they cannot be certain of always getting their way. They would need to align with at least one or more investors to surpass 50% of the voting power.

User Mushroom
by
8.0k points