Use the Information for the Question(s)below

question 47

Multiple Choice

Use the information for the question(s) below.
Rockwood Industries has 100 million shares outstanding,a current share price of $25,and no debt.Rockwood's management believes that the shares are underpriced,and that the true value is $30 per share.Rockwood plans to pay $250 million in cash to its shareholders by repurchasing shares.Management expects that very soon new information will come out that will cause investors to revise their opinion of the firm and agree with Rockwood's assessment of the firm's true value.
-If Rockwood is able to repurchase shares prior to the market becoming aware of the new information regarding Rockwood's true value,then the number of shares outstanding following the repurchase is closest to:

• A)92 million.
• B)10 million.
• C)75 million.
• D)90 million.

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Definitions:

SSD Drives

Solid-State Drives, a type of storage device that uses flash memory for storing data, known for its high speed and durability compared to traditional hard drives.

Storage Device

A hardware device designed for storing and retrieving digital data, such as hard drives, USB flash drives, and SD cards.

SSD Drives

Solid State Drives, a type of mass storage device similar to a hard disk drive, but using flash memory for storing data, providing faster access speed and reliability.

Mechanical Hard Drives

Data storage devices that use mechanical components such as spinning disks and read/write heads to access and store digital information.