qz) Page 453 Questions and Problems comec'f IFINANCE BASIC [Questions 177) 1. Corporate Voting The shareholders of the Pineapple Company need to elect seven new directors. There are 750,000 shares outstanding currently trading at $64 per share. You would like to serve on the board of directors; unfortunately, no one else will be voting for you. How much will it cost you to be certain that you can be elected if the company uses straight voting\".7 How much will it cost you if the company uses cumulative voting? 2. Cumulative Voting An election is being held to ll four seats on the board of directors of a rm in which you hold stock. The company has 27,300 shares outstanding. If the election is conducted under cumulative voting and you own 500 shares, how many more shares must you buy to be assured of earning a seat on the board? 3. Cumulative Voting The shareholders of Solar Power Corp. need to elect ve new directors to the board. There are 15.2 million shares of common stock outstanding and the current share price is $16.85. If the company uses cumulative voting procedures. how much will it cost to guarantee yourself one seat on the board of directors? 4. Corporate Voting Highway 65. Inc.. is going to elect 12 board members next month. Marisol owns 11.6 percent of the total shares outstanding. How condent can she be of having one of her candidate friends elected under the cumulative voting rule'.' Will her friend be elected for cenain if the voting procedure is changed to the staggering rule, under which shareholders vote on four board members at a time? 5. Financial Leverage Home Corp. has interestrbearing debt with a market value of $65 million. The company also has 2.1 million shares that sell for $43 per share.What is the debt-equity ratio for this company based on market values? 6. Financial Leverage Edgehill, Inc., has 355,000 bonds outstanding. The bonds have a parvalue of$1,000. a coupon rate of5.4 percent paid semiannually. and 27' years to maturity. The current YTM on the bonds is 4.6 percent. The company also has ll million shares of stock outstanding, with a market price of $76 per share. What is the company's market value debtequity ratio? 7. Financial Leverage Fields, Inc.. has the following book value balance sheet: A Ls Total Debt and quu WNW $170 000 000