Use the Information for the Question(s)below

question 58

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.
-After the repurchase how many shares will Luther have outstanding?

• A)0.75 billion
• B)1.0 billion
• C)1.1 billion
• D)1.2 billion