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BAD Company's stock price is $25, and it has 80 milion shares outstanding You belleve that if you buy the company and replace its management,

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BAD Company's stock price is $25, and it has 80 milion shares outstanding You belleve that if you buy the company and replace its management, its value will ia ease by 16% Assume that BAD has a poison pil with a 20% trigger if triggered, al target shareholders the than the acquirer wil be able to by one new share in BAD for each share they own at a 80% discount Assume that the price remains at S25 while you are acquing your shares lf 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 pli? If you lose, where does the loss go (who benofits)? If you gain, where does the gain come from (who loses)

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