Use the Information for the Question(s)below

question 10

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.
-With perfect capital markets,what is the market price per share of Luther's stock after the share repurchase?

• A)$25
• B)$24
• C)$15
• D)$20

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Definitions:

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A telecommunications network that enables devices to connect and communicate wirelessly over radio waves without the need for a physical connection.

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Protocols established to ensure interoperability and compatibility among wireless devices, such as Wi-Fi (IEEE 802.11) and Bluetooth standards.

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An IEEE wireless standard that uses both the 2.4 and 5 GHz ranges and that supports speeds up to 600 Mb/s.