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


BAD? Company's stock price is $30?, and it has 4.0 million shares outstanding. You believe that if you buy the company and replace its? management, its value will increase by 15 %. Assume that BAD has a poison pill with a 25 % trigger. If? triggered, all target shareholderslong dash other than the acquirerlong dash will be able to buy one new share in BAD for each share they own at a 80 % discount. Assume that the price remains at $30 while you are acquiring your shares. If? BAD's management decides to resist your buyout? attempt, and you cross the 25 % threshold of? ownership: a. How many new shares will be issued and at what? price? Number of new shares issued is ___________. ?(Round to the nearest? integer.) The shares will be issued at ?$ ____________ per share. ?(Round to the nearest? cent.) b. What will happen to your percentage ownership of BAD? Co.? The percentage ownership will be ?% _____________. ?(Round to two decimal? places.) c. What will happen to the price of your shares of BAD? Co.? The new stock price will be ?$ _______________. ?(Round to two decimal? places.) d. Do you lose or gain from triggering the poison? pill? The gain? (loss) is ?$ ___________. ?(Round to the nearest? dollar, positive if? gain, negative if? loss, zero if? neither.) If you? lose, where does the loss go? (who benefits)? If you? gain, where does the gain come from? (who loses)? Every other shareholder in the target firm gains ?$ _________ per share. (Round to the nearest? cent.)

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Financial Management: How many new shares will be issued and at what price what
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