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

question 83

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.
-The market capitalization of d'Anconia Copper before this transaction takes place is closest to:

• A)$800 million.
• B)$900 million.
• C)$1100 million.
• D)$1200 million.

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Definitions:

Set Notation

A systematic way of representing a set and its elements using braces and specific symbols to denote operations and relationships.

Intersection Symbol

Generally represented by ∩, it denotes the common elements between two sets.

Union Symbol

In set theory, a symbol (∪) that denotes the union of two sets, meaning it combines all the elements from both sets, excluding duplicates.

Absolute Value Equation

An equation that contains an absolute value expression, requiring consideration of both the positive and negative cases to find solutions.