can you explain the outstanding shares before the issue and after the issue what does it mean in this excerise

JULK Lurrently sells for $26 per share. a. Should you exercise the option and sell the stock to the option writer (seller) if the stock price stays at $26 per share? b. Should you exercise the option if the stock's price increases to $30? What would be your gain (loss) if you bought the stock at $30 and then exercised the option? C. Should you exercise the option if the stocks price decreases to $20? What would be your gain (loss) if you bought the stock at $20 and then exercised the option? 2-6 Two textile companies, Meyer Manufacturing and Haugen Mills, began operations with identical balance sheets. One year later, both required additional manufacturing capacity, which could be obtained by purchasing a new machine for $200,000. To raise the needed funds, Meyer issued a five-year, $200,000 bond with a coupon rate equal to 8 percent. Haugen, on the other hand, decided to sell common stock to raise the $200,000. The stock was sold for $50 per share, and the issue increased the number of outstanding, or existing, shares by 20 percent from the pre-issue level. All previous issues of stock were sold for $50 per share also. The balance sheet for each company, before the asset increases, is as follows: Debt $200,000 Equity 200,000 Total assets $400,000 Total liabilities and equity $400,000 a. Show the balance sheet of each firm after the asset is purchased. b. How many shares of stock did Haugen have outstanding before the equity