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

question 53

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.
-Suppose you are a shareholder in d'Anconia Copper holding 500 shares,and you disagree with the decision to lever the firm.You can undo the effect of this decision by:

• A)borrowing $2000 and buying 100 shares of stock.
• B)selling 100 shares of stock and lending $2000.
• C)borrowing $1200 and buying 60 shares of stock.
• D)selling 60 shares of stock and lending $1200.

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Definitions:

Performance Standards

Established criteria against which an employee's work behavior and outputs are measured.

Unjust Dismissal

Termination of an employee's contract or employment without fair reason or without following due legal or contractual process.

Performance Management System

A systematic approach to improving individual and team achievement by setting and reviewing objectives, feedback, and assessments.

Electronically Monitoring

The process of using digital tools and devices to observe, record, or track individuals' activities or behavior, often in the context of the workplace.