Use the Information for the Question(s)below

question 69

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.The market value of Luther's non-cash assets is closest to:

• A)$22 billion.
• B)$20 billion.
• C)$25 billion.
• D)$18 billion.

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Definitions:

Intimacy

In Erikson’s theory, the ability to form close, loving relationships; a primary developmental task in young adulthood.

Competence

The ability to do something successfully or efficiently, often measured against a standard.

Autonomy

The ability or right of individuals to make their own choices and decisions independently, free from external influence or coercion.

Peer Influence

The influence that the attitudes, values, and behaviors of peers exert on an individual's personal attitudes, values, and behaviors.