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:

Language

A system of communication used by a particular community or country, consisting of written, spoken, or signed words and the rules for combining them.

Prefrontal Lobes

The part of the brain located at the front of the frontal lobes, involved in complex behaviors such as planning and personality development.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feeling, and behavior.

White Matter

The part of the brain and spinal cord made up of myelinated nerve fibers that is responsible for transmitting signals within the nervous system.