members of the board of directors were firm might be trying to take over ABC. initially pleased when another firm purchased per share. With 474,000 shares outstanding. EPS were $2.73. The entrepreneur and the shares, the entrepreneur and members of the board became concerned that the purchasing 10,000 shares of ABC stock. However, when the purchasing firm bought another 15,000 entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $37 took effect when any outside investor accumulated 37% or more of the shares outstanding. The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that of buying up to 825,000 shares of ABC at a 27% discount on current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the Current stockholders, excluding the potential takeover company, were given the privilege In view of the above information, ABC company is in the process of determining the costs entrepreneur and friendly" members of the board currently owned 109,000 shares of ABC. described by the following scenarios: Scenario #1: Takeover firm makes a move Gets 65% plus 1 share of ABC stock at the current market price level, in addition to shares previously accumulated Scenario #2: Friendly shareholders come to the rescue the way up to 583,000 shares of ABC. Under the poison pill provision, friendly shareholders Takeover firm exceeds the number of shares determined in the previous scenario, and gets all purchase to prevent a takeover attempt by the acquiring firm, next to what they already own. Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm