Use the Following Information to Answer the Question(s)below

question 97

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion.It also has $750 million in debt outstanding.Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt.Assume perfect capital markets.
-The number of shares that Galt must issue is closest to:

• A)15 million.
• B)25 million.
• C)30 million.
• D)40 million.

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Definitions:

Pushing Promotional Strategy

A marketing approach that involves "pushing" products towards consumers by making sure products are visible and available in retail stores.

Purchase Decision

The process by which a consumer decides to buy a product or service, influenced by factors such as need, desire, and the perceived value of the item.

Ultimate Consumer

The end user of a product or service, who purchases and uses goods and services for personal use rather than for resale or production.

Increase Profitability

Strategies or actions aimed at enhancing a company's financial gains by increasing revenue, reducing costs, or both.