You were recently appointed to the board of directors for Dropbox.

a. What are the main responsibilities of the board of directors?

b. Suppose that Microsoft just approached Dropbox about acquiring it. You and the board decide to ght this takeover attempt. What tools could you use to deter Microsoft?

c. How does the Sarbanes-Oxley Act and the Dodd-Frank Act affect the board of directors at Dropbox?

d. Suppose that an activist investor at Dropbox is attempting to remove the board of directors. It would cost $500,000 today to start a proxy contest. There is a 15% chance of success, and the activist investor owns 7% of the company. There are 10 million shares outstanding. If the campaign succeeds, then the stock price increases by $10 after a full year. If it fails, then the stock price remains that same. Assume that the appropriate discount rate is 12%. Is this a positive NPV investment for the activist investor?