Use the Information for the Question(s)below

question 58

Multiple Choice

Use the information for the question(s) below.
Luther is a successful logistical services firm that currently has $5 billion in cash.Luther has decided to use this cash to repurchase shares from its investors,and has already announced the stock repurchase plan.Currently Luther is an all-equity firm with 1.25 billion shares outstanding.Luther's shares are currently trading at $20 per share.
-After the repurchase how many shares will Luther have outstanding?

• A)0.75 billion
• B)1.0 billion
• C)1.1 billion
• D)1.2 billion

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Definitions:

Organizational Strategy

A comprehensive plan outlining how a company will achieve its goals and objectives, considering its resources, market position, and competition.

Logical Argument

A reasoned, structured series of statements intended to establish a position or persuade an audience.

Conclusions

Final decisions or opinions formed after considering all the relevant facts and evidence.

Analytical Reports

Documents that provide detailed analysis and insights on specific subjects, often used to support decision-making processes.