BAD Company's stock price is $$25\mathrm{.}00,$ and the firm has $4$ million shares

outstanding. You believe you can increase the company's value if you buy it and

replace the management. Assume that BAD has a poison pill with a $20\%$ trigger.

If triggered, all BAD's shareholders$-$other than the acquirer$-$will be able to

buy one new share in BAD for each share they own at a $70\%$ discount. Assume

that the price remains at $$25\mathrm{.}00$ while you are acquiring your shares. If BAD's

management decides to resist your buyout attempt, and you cross the $20\%$

threshold of ownership:

a$.$ How many new shares will be issued and at what price?

b$.$ What will happen to your percentage ownership of BAD?

c$.$ What will happen to the price of your shares of BAD?

d$.$ Do you lose or gain from triggering the poison pill? If you lose, where does

the loss go $($who benefits$)?$ If you gain, from where does the gain come $($who

loses$)?$

a$.$ How many new shares will be issued and at what price?

The number of new shares issued is

$($Round to the nearest integer.$)$