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

question 37

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 value of a share of d'Anconia Copper will be closest to:

• A)$18.33.
• B)$20.00.
• C)$25.00.
• D)$27.50.

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Definitions:

Chromosomal Abnormalities

Genetic defects involving changes in the number or structure of chromosomes, leading to various developmental and health issues.

Polygenic Inheritance

A pattern of inheritance where multiple genes contribute to a complex trait, such as height or skin color.

Genomic Imprinting

A genetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner.

Incomplete Dominance

A genetic phenomenon in which the phenotype of the heterozygote is intermediate between both homozygotes, neither allele being completely dominant over the other.