Use the Information for the Question(s)below

question 69

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.
-Assume that in addition to 1.25 billion common shares outstanding,Luther has stock options given to employees valued at $2 billion.The market value of Luther's non-cash assets is closest to:

• A)$22 billion.
• B)$20 billion.
• C)$25 billion.
• D)$18 billion.

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Definitions:

Machine-Hours

The total duration of operation for machinery within a specified timeframe, used in cost and efficiency analysis.

Selling Price

The amount of money a customer pays for a particular product or service.

Unit Product Costs

The total cost associated with producing one unit of a product, including direct materials, direct labor, and overhead.

Markup

The amount added to the cost of goods to determine their selling price, typically expressed as a percentage of the cost.