Answer :
Answer:
total cost = $2640033
cost = $1320033
Explanation:
given data
share = 160,000
priced = $33 a share
solution
we first find here cost for buy seat using straight voting that is express as
cost to buy seat = cost × share needed ...............1
Shares needed = 50 % of shares + 1 share
Shares needed = 50 % of 160000 + 1
Shares needed = 80001
so total cost is
Total cost = 80001 × $33
total cost = $2640033
and
Cost for cumulative voting is here
Cost = price × [tex]\frac{shares}{number of seats+1} + 1[/tex]
Cost = $33 × [tex]\frac{160000}{3+1} + 1[/tex]
cost = $1320033