What are the main responsibilities of the board of directors

Assignment Help Financial Management

Reference no: EM132039129

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?

Reference no: EM132039129

Questions Cloud

Beverly bonds to make jane interested in making switch : What rate must be set on the Beverly bonds to make Jane interested in making a switch?

What will be george expected accumulation in each account : What will be George’s expected accumulation in each account at age 65?

What is its pretax cost of debt-what is the cost of equity : If the company’s cost of equity is 16 percent, what is its pretax cost of debt? what is the cost of equity?

What is equivalent annual effective interest rate on loan : The annual interest rate on this loan is 13.4%. What is the equivalent annual effective interest rate on this loan?

What are the main responsibilities of the board of directors : What are the main responsibilities of the board of directors? How does the Sarbanes-Oxley Act and the Dodd-Frank Act affect the board of directors at Dropbox?

Winner stocks and loser stocks both tend to be growth stocks : Historically, winner stocks and loser stocks both tend to be growth stocks; they both tend to be medium size stocks.

Assuming they take the discount loan : Assuming they take the discount loan and pay as agreed, how many dollars of interest will they end up paying on this loan?

Fast food industry stock valuation : Fast Food Industry Stock Valuation. Find for Wendy's. McDonald's, and Burger King:

Calculate the yield using geometric average : If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average.

User Account

All Pages