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

question 83

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-The market capitalization of d'Anconia Copper before this transaction takes place is closest to:

• A)$800 million.
• B)$900 million.
• C)$1100 million.
• D)$1200 million.

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Definitions:

Observational Learning

Learning that occurs through observing the behaviors of others and the outcomes of those behaviors, without direct experience.

Acquiring

The process of gaining knowledge, skills, behaviors, or values, often through study, experience, or being taught.

Overimitation

The act of copying another's actions more exactly than is necessary, often ignoring simpler or more efficient alternatives.

Copying

Copying involves replicating someone else's behaviour or work, often used in learning processes but can also pertain to imitative behavior in various contexts.