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can you please do all of the parts BAD Company's stock price is $25, and it has 8.0 million shares outstanding You believe you can
can you please do all of the parts
BAD Company's stock price is $25, and it has 8.0 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 potson pil with a 25% trigger. If triggered, all target shareholders-other than the acquirer-wil be able to buy one new share in BAD for each share they own at a 80% discount. Assume that the price remains at $25 while you are accuiring your shares. If BAD's managemont decibes to resist your buyout attempt, and you cross the 25% threshold of ownership: a. How many new shares will be issued and at what price? b. What will happen to your porcentage ownership of BAD? c. What will happen to the price of your shares of BAD? d. Do you lose or gain from triggeting the poison pill? If you lose. where does tho loss go (Who benchts)? If you gain. Where does the gain come from (who loses)? a. How mary new shares will be issued and at what price? Number of new shares issued is (Round to the nearest integer) Step by Step Solution
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