Question

Dr. Phil wishes to know how many shares are necessary to elect $\mathbf{6}$ directors out of $\mathbf{14}$ directors up for election for the board of the Winfrey Publishing Company. There are $\mathbf{3}\mathbf{,}\mathbf{40}\mathbf{,}\mathbf{000}$ shares outstanding. (Use Formula $\mathbf{17}\mathbf{-}\mathbf{1}$ to determine the answer.)

Short answer

The number of shares required to elect $\mathbf{6}$ directors is $\mathbf{136}\mathbf{,}\mathbf{001}\mathbf{}$shares.

Step-by-step solution

Information provided in the question

Shares outstanding $=340,000$ shares

Total number of directors $=14$

Number of directors to be elected $=6$

Calculation of shares required to elect 6 directors

The number of shares required is 136,001 shares.