BAD Company's stock price is $20, and it has 2 million shares outstanding. You believe that if you buy the company and replace the management. Assume that BAD has a poison pill with a 20% trigger. If it is triggered, all BADs shareholders other than the acquirer will be able to buy one new share in BAD for each share they own at 50% discount. Assume that the price remains at $20 while you acquire your share. if BADs 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?