1. Midland Petroleum is holding a stockholders meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 15 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 36,001 shares. Ms. Ramsey and her friends on the board control 66,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 20,998 shares. The company uses cumulative voting.

a. How many directors can Mr. Clark be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors =

b. How many directors can Ms. Ramsey and her friends be sure of electing? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors =

c-1. How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of directors =

c-2. Will he control the board?

	Yes
	No

d. If nine directors were to be elected, and Ms. Ramsey and her friends had 64,001 shares and Mr. Clark had 44,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect? (Do not round intermediate calculations. Round down your answer to the nearest whole number.) Number of the directors =

2. Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to eight votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,700,000 total shares currently outstanding, the original founder's family owns 52,325 shares.

What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Percentage of votes =