Use the Information for the Question(s)below

question 10

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 price per share of Luther's stock after the share repurchase?

• A)$25
• B)$24
• C)$15
• D)$20

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Definitions:

Waxy Cell Wall

A characteristic feature of certain bacteria, providing protection and contributing to their virulence by resisting desiccation and antibiotics.

Anaerobic Bacteria

Bacteria that thrive in environments lacking oxygen, playing roles in processes like fermentation.

Cholera

An infectious disease caused by the bacterium Vibrio cholerae, leading to severe diarrhea and dehydration.

Spirillum

A spiral-shaped bacterium.