Use the Information for the Question(s)below

question 58

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

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

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Definitions:

Bases Of Power

Conceptual framework identifying different sources of power within organizational and interpersonal dynamics, such as coercive, reward, legitimate, expert, and referent power.

French And Raven

Refers to social psychologists John R. P. French and Bertram Raven who developed a framework of bases of power, explaining different forms of power and influence.

Referent Power

The influence one possesses based on others' admiration or respect towards them, often leveraging the desire of others to identify and be associated with the person.

Informational Power

Power derived from possessing knowledge or information that others find useful or valuable.