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25. Seoul Corporate Governance Improvement (SCGI) decided to engage in a proxy fight against Samson Inc. to win a board seat. Suppose SCGI owns 6%
25. Seoul Corporate Governance Improvement (SCGI) decided to engage in a proxy fight against Samson Inc. to win a board seat. Suppose SCGI owns 6% of shares, the cost of mounting a proxy contest is $100,000, and the benefit (i.e., increase in share price) is $10 per share. What should be the level of winning probability that makes SCGIs proxy fight profitable if the outstanding number of shares is 1 million?
A. | 16.7% | |
B. | 12.50% | |
C. | $14.29 | |
D. | 2.00% |
All explanations are needed ! Thank you!
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