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Scrappy Corp. has 100M shares outstanding and a poison pill in place that will be triggered if an investor acquires 10% or more of outstanding
Scrappy Corp. has 100M shares outstanding and a poison pill in place that will be triggered if an investor acquires 10% or more of outstanding shares. The poison pill allows all other shareholders to buy two additional shares at half the market price. Suppose a raider accumulates 10M shares of Scrappy's stock at $10 per share, thus costing $100M. This triggers the poison pill. What is the new stock price.
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Lets recalculate the new stock price and the new fraction of the firm owned by the raider Given Scra...
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
