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:

Local Retailers

Small-scale stores or businesses that sell goods directly to consumers within a specific locality or community.

Immediate Customer Response

A business strategy focusing on promptly addressing customer inquiries, complaints, or needs.

Lead Time

The amount of time that elapses between the initiation and completion of a process, such as the period from order to delivery.

Short Life Span

Refers to products or entities characterized by a brief period of usefulness or relevance before they become obsolete or expire.