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:

Autism Spectrum

A range of complex neurodevelopment disorders, characterized by social impairments, communication difficulties, and restricted, repetitive, and stereotyped patterns of behavior.

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Relates to the development of smooth, uninterrupted speech in early childhood, often concerning the study or treatment of speech disorders.

Speaking Evenly

A communication technique often used in therapeutic settings, where the speaker distributes their attention and speech evenly across a range of topics, avoiding any particular emotional emphasis.

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