Which of the following is not true? By purchasing a common stock, you will get to participate in the firm's decision-making process based on the number of shares you have. Holders of preferred stock cannot vote on the firm's decision-making based on the number of shares they have. Minority shareholders can elect a director under straight voting without securing majority votes. O Cumulative voting makes it easier for minority stockholders to have some voice in the firm's decision-making. Question 20 1 pts In cumulative voting, you have multiple votes to cast per a share in elections for the company's directors. For instance, if there are three candidates running, then someone who holds one share of the firm will have three votes. Here, the shareholder will have option to either divert his/her votes to multiple candidates or cast all of his/her votes to a single candidate. A director will be elected if he/she receives 1 / (Number of Director Up for Election +1). For example, if the company is electing three directors, then a candidate who receives 1/(3 + 1) - 25% of the vote will be elected Now assume that ABC Corp.will elect for nine directors this year, and ABC's shareholder include ABC Holdings. Co, which has 81% of shares, John Doe, who has 11% of shares, and James Hoffa, who has 8% of shares. ABC Corp. will elect the new director based on cumulative voting. Currently, John Doe is planning to use all of his votes to vote for Jane Erickson, who Doe believes will best represent his interests as a shareholder. Hoffa is currently planning to vote for Willy Bulger, who Hoffa believes will best represent his interests. Recently, Doe and Hoffa began talking about the possibility where they will both pledge all of their votes to Henry Hill, a compromise candidate who they thought could represent both of their interest to some extent. Which of the following most accurately describes a possible outcome of this election? Doe alone will have sufficient votes to elect a director without cooperating with Hoffa. Both Doe and Hoffa will have sufficient to elect the directors that they prefer without cooperating with one anoher. Neither Doe nor Hoffa will have sufficient votes to elect a director without each other's help, but will have sufficient votes to elect a director if they both support the same candidate. Neither Doe nor Hoffa will have sufficient votes to elect a director regardless of the collaborate with one another