The Rainbow Corporation had traditionally been a constant dollar-dividend paying company, with the board enjoying the support of retired investors holding 65% percent of the voting shares. A dissident group of high-salaried young investors holding 30% percent of the voting shares prefers reinvestment of earnings to save personal taxes and, hence, wants to elect board members supportive of its cause. The company has 600,000 shares of common stock outstanding and the board has 13 members-all to be reelected shortly.

(Please Show Work)

a. How many directors can the young stockholders elect under...

i. cumulative voting rules?

ii. majority voting rules?

b. What percentage (%) of voting shares and/or proxies must the dissident group have to be able to elect 7 out of the 13 board members?