1) Illustrate the difference between majority and cumulative voting systems using as an example a shareholder who owns 1,000 shares and an election in which three directors will be selected. Why might shareholders care about which voting system is adopted? a) What does it mean to say that financing is a zero-NPV transaction? b) Disregarding issues of risk and return, why might it be important to shareholders and management alike as to which class of equities issued (example: common, preferred, Etc)