Question

Question

An election is being held to fill four seats on the board of directors of a firm in which you hold stock. The company has 7,600 shares outstanding. If the election is conducted under cumulative voting and you own 370 shares, how many more shares must you buy to be assured of earning a seat on the board? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  

New shares to purchase

shares ___________

Question

New Business Ventures, Inc., has an outstanding perpetual bond with a coupon rate of 12 percent that can be called in one year. The bond makes annual coupon payments. The call premium is set at $170 over par value. There is a 60 percent chance that the interest rate in one year will be 14 percent, and a 40 percent chance that the interest rate will be 9 percent. If the current interest rate is 12 percent, what is the current market price of the bond? Assume a par value of $1,000. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

    

Current market price

$ _________

Answer 1