Question

Mr. Meyers wishes to know how many shares are necessary to elect $\mathbf{5}$ directors out of $\mathbf{14}$ directors up for election in the Austin Power Company. There are $\mathbf{1}\mathbf{,}\mathbf{50}\mathbf{,}\mathbf{000}$ shares outstanding. (Use Formula $\mathbf{17}\mathbf{-}\mathbf{1}$ to determine the answer.)

Short answer

The number of shares required to elect $\mathbf{5}$ directors is $\mathbf{50}\mathbf{,}\mathbf{001}$ shares.

Step-by-step solution

Information provided in the question

Shares outstanding = 150,000 shares

Total number of directors = 14

Number of directors to be elected = 5

Calculation of shares required to elect 5 directors

The number of shares required is 50,001 shares.

Shares required= $$\begin{gathered} \frac{\mathbf{(}\mathbf{N}\mathbf{u}\mathbf{m}\mathbf{b}\mathbf{e}\mathbf{r}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{d}\mathbf{i}\mathbf{r}\mathbf{e}\mathbf{c}\mathbf{t}\mathbf{o}\mathbf{r}\mathbf{s}\mathbf{}\mathbf{d}\mathbf{e}\mathbf{s}\mathbf{i}\mathbf{r}\mathbf{e}\mathbf{d}\mathbf{\times }\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{n}\mathbf{u}\mathbf{m}\mathbf{b}\mathbf{e}\mathbf{r}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{s}\mathbf{h}\mathbf{a}\mathbf{r}\mathbf{e}\mathbf{s}\mathbf{}\mathbf{o}\mathbf{u}\mathbf{t}\mathbf{s}\mathbf{t}\mathbf{a}\mathbf{n}\mathbf{d}\mathbf{i}\mathbf{n}\mathbf{g}\mathbf{)}}{\mathbf{T}\mathbf{o}\mathbf{t}\mathbf{a}\mathbf{l}\mathbf{}\mathbf{n}\mathbf{u}\mathbf{m}\mathbf{b}\mathbf{e}\mathbf{r}\mathbf{}\mathbf{o}\mathbf{f}\mathbf{}\mathbf{d}\mathbf{i}\mathbf{r}\mathbf{e}\mathbf{c}\mathbf{t}\mathbf{o}\mathbf{r}\mathbf{s}\mathbf{}\mathbf{t}\mathbf{o}\mathbf{}\mathbf{b}\mathbf{e}\mathbf{}\mathbf{e}\mathbf{l}\mathbf{e}\mathbf{c}\mathbf{t}\mathbf{e}\mathbf{d}\mathbf{+}\mathbf{1}}\mathbf{+}\mathbf{1} \\ \mathbf{=}\frac{\mathbf{5}\mathbf{\times }\mathbf{}\mathbf{150}\mathbf{,}\mathbf{000}}{\mathbf{14}\mathbf{+}\mathbf{1}}\mathbf{+}\mathbf{1} \\ \mathbf{=}\frac{\mathbf{7}\mathbf{,}\mathbf{50}\mathbf{,}\mathbf{000}}{\mathbf{15}}\mathbf{+}\mathbf{1} \\ \mathbf{=}\mathbf{50}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{1} \\ \mathbf{=}\mathbf{50}\mathbf{,}\mathbf{001}\mathbf{}\mathit{S}\mathit{h}\mathit{a}\mathit{r}\mathit{e}\mathit{s} \end{gathered}$$