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XYZ's stock price is 515, and the firm has 10 million shares outstanding. Assume that XYZ has a poison pill with a 20% trigger. If

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XYZ's stock price is 515, and the firm has 10 million shares outstanding. Assume that XYZ has a poison pill with a 20% trigger. If it is triggered, all XYZ's shareholders-other than the acquirer will be able to buy one new share in XYZ for each share they own at a 40% discount. ABC wants to acquire XYZ and replace its management. Assume that the price remains at $15 while ABC is acquiring XYZs shares. If XYZ'S management decides to resist ABC's buyout attempt, and ABC cross the 20% threshold of ownership. What is the loss for ABC after triggering the poison pill? O A 17.8% B. 194 OC 25% D. 40 XYZ's stock price is 515, and the firm has 10 million shares outstanding. Assume that XYZ has a poison pill with a 20% trigger. If it is triggered, all XYZ's shareholders-other than the acquirer will be able to buy one new share in XYZ for each share they own at a 40% discount. ABC wants to acquire XYZ and replace its management. Assume that the price remains at $15 while ABC is acquiring XYZs shares. If XYZ'S management decides to resist ABC's buyout attempt, and ABC cross the 20% threshold of ownership. What is the loss for ABC after triggering the poison pill? O A 17.8% B. 194 OC 25% D. 40

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