Use the Information for the Question(s)below

question 2

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.
-With perfect capital markets,what is the market value of Luther's equity after the share repurchase?

• A)$15 billion
• B)$10 billion
• C)$25 billion
• D)$20 billion

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Definitions:

Brachiocephalic Veins

Major veins that return oxygen-depleted blood from the upper limbs, neck, and head to the heart.

Great Saphenous

The longest vein in the body, running along the length of the leg, used in grafts during coronary bypass surgery.

Femoral

Pertaining to the thigh or femur (thigh bone), particularly in reference to arteries, veins, and nerves running through the thigh area.

Pulmonary Trunk

The major blood vessel that originates from the right ventricle of the heart and bifurcates into the right and left pulmonary arteries, carrying deoxygenated blood to the lungs.