How many new shares will be issued and at what? price

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Question - BAD? Company's stock price is $35?, and the firm has 12 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 poison pill with a 25% trigger. If? triggered, all? BAD's shareholders-other than the acquirer-will be able to buy one new share in BAD for each share they own at a 65% discount. Assume that the price remains at $35 while you are acquiring your shares. If? BAD's management decides 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 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, from where does the gain come? (who loses)?

Reference no: EM133028042

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