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:

Delegating Authority

Delegating authority involves assigning responsibility and the corresponding power to make decisions and take actions to others in an organization or team.

Personality Characteristics

Traits that describe an individual's consistent patterns of feeling, thinking, and behaving.

Emotional Affectivity

The extent to which people typically experience positive and negative emotions.

Negative Affect

Emotional expressions and experiences characterized by distress, discomfort, and dissatisfaction.