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6. Alpha corporation has a poison pill. The exercise price is $75 and Alpha's current stock price is $25. The poison pill entitles the shareholders
6. Alpha corporation has a poison pill. The exercise price is $75 and Alpha's current stock price is $25. The poison pill entitles the shareholders with poison pill rights to acquire new stock at 40% discount from the current stock price. There are 1,600 shares outstanding. Beta corporation is trying to acquire Alpha. It has bought 240 shares of Alpha. If the poison pill is activated and all shareholders with poison pill rights exercise their rights, what is the new total number of shares outstanding in Alpha corporation? A. 5,250 B. 6,300 C. 6,800 D. 8,200 E. 8,400
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