Use the Information for the Question(s)below

question 82

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.
-Assume that in addition to 1.25 billion common shares outstanding,Luther has stock options given to employees valued at $2 billion.After the repurchase how many shares will Luther have outstanding?

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

Understand the importance of feedback in achieving accurate interpersonal communication.

Distinguish between the different types of communication barriers and their impact on message transmission.

Identify the elements and outputs of an effective communication process.

Recognize the importance of matching communication methods to the complexity and emotional content of the problem being addressed.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Total Revenue

Total Revenue is the full amount of income generated by the sale of goods or services before any costs are deducted.

Perfectly Elastic Demand

Demand in which quantity drops to zero at the slightest increase in price.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable change while holding others constant.