What is the probability that grundig will be dumped

Reference no: EM131370968

The Dutch consumer-electronics giant, Philips, is protected against takeovers by a unique corporate voting structure that gives power only to a few trusted shareholders.

A decision of whether to sever Philips' links with the loss-producing German electronics firm 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: EM131370968

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