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

question 37

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-At the conclusion of this transaction,the value of a share of d'Anconia Copper will be closest to:

• A)$18.33.
• B)$20.00.
• C)$25.00.
• D)$27.50.

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Definitions:

Master Valve

A primary control valve used to start or stop fluid flow in a system, often used in piping and machinery for operational control.

Electric Shifter Assembly

An electronically controlled mechanism that allows drivers to change gears in a vehicle, typically providing smoother gear transitions.

Ball Screw Block

A component of a ball screw system that moves linearly along the screw, converting rotary motion into precise linear motion.

Shift Finger Transversely

Refers to the movement or positioning of a shift finger (a component in gear selection mechanisms) across a lateral axis to engage different gears.