Case Problem $12\mathrm{.}3$

Cascades Swim Club

The Cascades Swim Club has $300$ stockholders, each holding one share of silock in the club. A share of club stock allows the shareholder's family to use the club's heated outdoor pool during the summer upon payment of annual membership dues of $$175.$ The club has not issued any stock in years, and only a few of the existing shares come up for sale each year. The board of directors administers the sale of all stock. When a shareholder wants to sell, he or she turns the stock into the board, which sells it to the person at the top of the waiting list. For the past few years, the length of the waiting list has remained relatively steady at approximately $20$ names.

However, during the past winter two events occurred that have suddenly increased the demand for shares in the club. The winter was especially severe, and subzero weather and heavy ice storms caused both the town and the county pools to buckle and crack. The problems were not discovered until maintenance crews began to prepare the pools for the summer, and repairs cannot be completed until the fall. Also during the winter, the manager of the local country club had an argument with her board of directors and one night burned down the clubhouse. Although the pool