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

question 21

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.
-At the conclusion of this transaction,the number of shares that d'Anconia Copper will have outstanding is closest to:

• A)5 million.
• B)15 million.
• C)20 million.
• D)40 million.

---

Definitions:

Peripheral Nervous System

The part of the nervous system that lies outside the brain and spinal cord, responsible for transmitting information between the central nervous system and the rest of the body.

Endocrine System

A network of glands in the body that produce and release hormones directly into the blood, regulating processes such as growth, metabolism, and reproduction.

Behavior Influence

The effects that the behaviors of individuals or groups have on the actions and attitudes of others.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems involved in muscle activation, memory, and learning.