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:

Replace Dialog Box

A user interface element that allows users to search for and replace specific pieces of text, symbols, or data within a document or file.

Find Next Button

A user interface element typically found in software applications that allows the user to search for the next occurrence of a specified text string.

Confirm Each Change

A feature or practice of verifying and accepting each modification individually before it is finalized, often used in editing or configuration settings.

WordArt Text

A feature in various Microsoft Office products that allows users to create stylized text with special effects.