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please help with a,b,c and d BAD Company's stock price is $35, and it has 12.0 million shares outstanding. You believe that if you buy
please help with a,b,c and d
BAD Company's stock price is $35, and it has 12.0 million shares outstanding. You believe that if you buy the company and replace its management, its value will ncrease by 40% Assume that AD has a pos on pill with a 20% trigger. If triggered, all target shareholders other than the acquirer will be able to buy one new share i BAD for each share they own at a 50% discount. Assume that he p ce remains at $35 while you are acqui 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 pill? If you lose, where does the loss go (who benefits)? If you gain, where does the gain come from (who loses)? iring your shares. If BAD's management decides to a. How many 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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