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BAD Company's stock price is $40, and it has 4.0 million shares outstanding. You believe you can increase the company's value if you buy it

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BAD Company's stock price is $40, and it has 4.0 million shares outstanding. You believe you can increase the company's value if you buy it and reptace the management. Assume that BAD has a poison pill with a 15% trigger. If triggered, all target shareholders-other than the acquirer-will be able to buy one new share in BAD for each share they own at a 75% discount. Assume that the price remains at 540 while you are acquiring your shares. If BAD's management decides to resist your buyout attempt, and you cross the 15% threshoid of ownership: a. How many new shares will bo issued and at what price? b. What will hapgen to your percentage ownership of BAD? c. What will happen to the price of your shares of BAD? d. Do you lose of gain from triggering the poison pil? If you lose, where does the loss go (who benefits)? If you gain, where does the gain come from (who loses)

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