Question: 1 - Illustrate the difference between majority and cumulative voting systems using as an example a shareholder who owns 5,000 shares and an election in
1 - Illustrate the difference between majority and cumulative voting systems using as an example a shareholder who owns 5,000 shares and an election in which three directors will be selected. Why might shareholders care about which voting system is adopted?
2 Why is financing a zero-NPV transaction? What does that term mean?
3 What is the difference between common and preferred stock? Why might current common stock shareholders prefer the company issue only preferred stock, and not common stock, in the future?
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