Asset Management

1. Anzio Inc. has two classes of shares. Class B has 10 times the voting rights of Class A. If you own 10% of the Class A shares and 20% of the Class B shares, what percentage of the total voting rights do you hold?

2. Assume Evco, Inc. has a current stock price of $50 and will pay a $2 dividend in one year; its equity cost of capital is 15%. To justify its current price, what price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year?

1. If you own 15,000 shares of stock of Brookfield Asset Management and it pays a dividend of $0.18 per share, then what is the total dividend you will receive?

2. You own 20% of the stock of a company with 10 directors on its board. How much representation can you get on the board if the company has cumulative voting?

How much representation can you ensure if the company has straight voting?

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