Use the Information for the Question(s)below

question 82

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

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

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Definitions:

Environmental Performance

An evaluation of how well an organization adheres to environmentally sustainable practices and minimizes its ecological footprint.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization.

Life Cycle Assessment

A method used to evaluate the environmental impacts of a product, process, or service, from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

ISO 14040

A standard within the ISO 14000 family that specifies the framework and principles for conducting and reporting on life cycle assessment studies.