7.

BAD Company's stock price is $30, and it has 4.0 milion shares cutstanding. You believe you can increase the company's value if you bry 6 and replace the manegement Assume inat BAD has a poison pall with a 15% trigger. If triggered, all tarpot ahareholder- other than the acquirer-will be able to buy one new sha'e in BAD for each share they own at a 60% discount. Assume fat the paice remains at 330 while you ore acquiring your shares. If BAD"s management decides to resist your buyout attempt, and you coss the 15%, theshoid of ownership: a. How many new shares will be issued and at what price? b. What will happen to your percentage omership of EnD? c. What will happen to the price of your shares of aAD? d. Do you lose or gain trom triggering the poson pill? If you lose, where does the loss go (who benefits)? If yourgain, where does the gain come trom (who loses)? a. How many new shares will be issued and at what price? Number of new shares issued is (Round to the nearest integec) The shares will be issued ats ger share. (Round to the nearest otht) b. What will happen to your percentage owenership of B AD Ca? The percentage ownership will be s. (Round to two decimal placos.). c. What will happen to the grice of your thares of BAD CO? The new siock proo will bes (Round to two decimal places) d. Do you lose or gain from triggaring the poison pir? The gain (loss) is 4 . (Round to the nearest dolar, poshive if gan, negative if loss. zero if nelher.) If you lose. Where does the loss go (Who benefits)? If you gain, where doos the gan come from (who loses)? Every ofwer shareholder in the target firm gains 1 perstare. (Rosand to the nesrest cent)