Probability that grundig will be dumped

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Reference no: EM13982731

The Dutch consumer-electronics giant, Philips, is protected against takeovers by a unique corporate voting structure that gives power only to a few trusted share- holders. A decision of whether to sever Philips' links with the loss-producing German electronics ?rm Grundig had to be made. The decision required a simple majority of nine decision-making shareholders. If each is believed to have a 0.25 probability of voting yes on the issue, what is the probability that Grundig will be dumped?

Reference no: EM13982731

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