Question

The Merrick and Stanley Corporation has 28,000 outstanding shares. During a proposal for a merger, the shareholders decide to increase the quorum of the vote of shareholders to 75 percent, using the supramajority voting rule. How many minimum affirmative votes would be needed to pass the supramajority voting requirement?

A) 14,001
B) 21,280
C) 21,000
D) 28,000

Answer 1

To meet the 75 percent supramajority voting rule for Merrick and Stanley Corporation's merger proposal, 75 percent of the 28,000 outstanding shares must vote affirmatively, equating to 21,000 votes, which corresponds to option C) 21,000.

Step-by-step explanation:

The Merrick and Stanley Corporation has 28,000 outstanding shares and requires a 75 percent supramajority voting rule for a merger proposal. To calculate the minimum number of affirmative votes needed to pass the supramajority voting requirement, we need to determine 75 percent of the total shares.

Calculating 75 percent of 28,000 shares gives us:

0.75 × 28,000 = 21,000

Therefore, the minimum number of affirmative votes needed is 21,000, which corresponds to option C) 21,000.