Use the Following Information to Answer the Question(s)below

question 97

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion.It also has $750 million in debt outstanding.Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt.Assume perfect capital markets.
-The number of shares that Galt must issue is closest to:

• A)15 million.
• B)25 million.
• C)30 million.
• D)40 million.

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Definitions:

Orange Juice

A liquid extract derived from oranges, commonly consumed as a beverage rich in vitamin C.

Total Spending

The sum of money spent by consumers or a specific sector of the economy in a given time period.

Price

The sum of money needed to buy a product, service, or property.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are deducted.