I just need answer #4 and 5 , ?Format Painter B / U.mx.x&.Z 1 Normal 1 No Spac.
ID: 330341 • Letter: I
Question
I just need answer #4 and 5
, ?Format Painter B / U.mx.x&.Z 1 Normal 1 No Spac. Heading 1 Heading 2Tteubotie Subile Em. Emphasis Font Pragriph yles 3. Wolfpack Inc. just paid $1 dividend per share, it plans to increase the dividend per share at a constant rate of 2.5% for the next 4 years then have constant dividend growth rate of 2% indefinitely. If the required rate of return is 10% what is one share of this stock worth today? (This is a nonconstant growth problem with multiple growth rates) - see below for steps. . Calculate dividends Employ zero or constant growth model . Find present value of stock today Problems 4-5: Cumulative voting is taking place at Corporation X. There are four voting seats on the Board of Directors that are to be voted upon. Company X has a total of 1000 shares outstanding with each share granting 4 votes, one for each board position. The majority group of investors holds 70% of the total shares while the minority block of investors controls the remaining 30% of the total shares 4. How manv votes oer board member should the maioritv block vote for eachExplanation / Answer
Total number of shares = 1000
Number of voting seats = 4
Total number of votes per share = 4
% of total shares the majority group holds = 70
Total number of shares with majority group = 70% of 1000 = 700
Total number of votes for majority group = 700 * 4 = 2800
% of total shares the minority group holds = 30
Total number of shares with minority group = 30% of 1000 = 300
Total number of votes for minority group = 300 * 4 = 1200
Ans4)
If the majority group wants to maximize their chances of winning all 4 board positions, they can divide their total votes among the open positions in the following manner - 1000, 600, 600, 600
Such a votes distribution would enable the majority block to have the maximum chance of electing all the board members as-
if the minority group distributes more than 600 votes on a seat that the majority group gave exactly 600 votes, the minority can win a maximum of one seat.
if the minority group votes in the range between 600-1000 for a particular seat that the majority group voted a 1000 votes for, the minority group would lose that seat as well as the rest of the other three seats, giving the majority group the best possible chance of securing all the 4 seats.
Ans 5)
The below formula can be used to find out the minimum number of shares that are needed in order to elect a specific number of directors.
X = (SN/D+1) + 1
where X = the number of shares needed to choose the number of directors
S = the total number of shares
N = the number of directors needed
D = the total number of directors that will be chosen
CASE 1
When the minority group need to elect 1 director, the minimum number of shares (X) that they need
= [(1000* 1)/ 4+1] + 1
= 201
As the minority group has 300 shares, they are guaranteed to elect a minimum of 1 director
CASE 2
When the minority group need to elect 2 directors, the minimum number of shares (X) that they need
= [(1000* 2)/ 4+1] + 1
= 401
As the minority group has only 300 shares, they cannot secure more than 1 board position.