Chemical Mines has 5,000 shareholders and is preparing to elect two new board members.

Chemical Mines has 5,000 shareholders and is preparing to elect two new board members.  You do not own enough shares to personally control the elections but are determined to oust the current leadership. Likewise, no other single shareholder owns sufficient shares to personally control the outcome of the election. Which one of the following is the most likely outcome of this situation given that some shareholders are happy with the existing management?    A.  negotiated settlement where each side is granted control over one of the open seats B.  protracted legal battle over control of the board of directors C.  arbitrated settlement where the arbitrator determines who will be elected to the board D.  control of the board decided without your influence E.  proxy fight for control of the board Refer to section 8.2

41.

Hardy Lumber has a capital structure which includes bonds, preferred stock, and common stock. Which of the following rights have most likely been granted to the preferred shareholders? I. right to share in company profits prior to other shareholders II. right to elect the corporate directors III. right to vote on proposed mergers IV. right to all residual income after the common dividends have been paid    A.  I only B.  I and III only C.  I and IV only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 8.2