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:

Action Statement

A clear, concise declaration outlining specific actions to be undertaken to achieve a certain objective.

Analyzer Organizations

Organizations that maintain their current products and markets while simultaneously exploring new opportunities, blending stability with innovation.

Aggressively

Engaging in actions or behavior with forcefulness or determination, often to achieve a particular goal.

Defender Organizations

Organizations that adopt a strategy focused on maintaining a secure position in existing product or service areas, rather than pursuing growth or innovation.