Use the Information for the Question(s)below

question 2

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 value of Luther's equity after the share repurchase?

• A)$15 billion
• B)$10 billion
• C)$25 billion
• D)$20 billion

---

Definitions:

Surroundings

The environmental context or setting in which an individual or object is situated, influencing their experience and behavior.

Traits

Enduring characteristics or qualities that define an individual's behavior across different situations.

Range of Reaction

The theory that genes set certain limitations on intelligence and emotional health, but environmental factors determine where individuals fall within these limits.

Behavioral Genetics

An area of research focused on understanding how behavioral traits are shaped by genetic and environmental impacts.