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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?
Fixed Dividends
Regular, predetermined dividend payments made by a corporation to its preferred stockholders.
Underwriting
The process by which an individual or institution takes on financial risk for a fee, such as in the issuance of insurance policies or financial securities.
Insurance Companies
Financial institutions that provide coverage, compensating financial losses during accidents, property damage, or other liabilities.
Discount Rate
The interest rate charged by central banks on loans to commercial banks or financial institutions, influencing monetary policy and economic activity.
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