Use the Following Information to Answer the Question(s)below

question 97

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion.It also has $750 million in debt outstanding.Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt.Assume perfect capital markets.
-The number of shares that Galt must issue is closest to:

• A)15 million.
• B)25 million.
• C)30 million.
• D)40 million.

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Definitions:

Hemolysis

The rupture or destruction of red blood cells, leading to the release of hemoglobin into the surrounding fluid.

Vitamin K

A vitamin that dissolves in fats, crucial for creating proteins needed for clotting blood and metabolizing bones.

Clotting Factors

Proteins in the blood plasma that work together to stop bleeding by forming a clot.

Prothrombinase

An enzyme complex involved in the blood coagulation process that catalyzes the conversion of prothrombin to thrombin.