Before the board of directors could make a decision on whether to sell more shares and, if

Question:

Before the board of directors could make a decision on whether to sell more shares and, if so, how many, the board members felt they needed more information. Specifically, they would like a forecast of the average number of people (family members, guests, etc.) who might attend the pool each day during the summer with the current number of shares.

The Cascades Swim Club has 300 stockholders, each holding one share of stock in the club. A share of club stock allows the shareholder€™s family to use the club€™s heated outdoor pool during the summer upon payment of annual membership dues of $175. The club has not issued any stock in years and only a few of the existing shares come up for sale each year. The board of directors administers the sale of all stock. When a shareholder wants to sell, he or she turns the stock into the board, which sells it to the person at the top of the waiting list. For the past few years, the length of the waiting list has remained relatively steady at approximately 20names.(......)