Use the Following Information to Answer the Question(s)below

question 83

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-The market capitalization of d'Anconia Copper before this transaction takes place is closest to:

• A)$800 million.
• B)$900 million.
• C)$1100 million.
• D)$1200 million.

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Definitions:

Culture Support

The promotion, encouragement, and reinforcement of a particular set of norms, values, and behaviors within an organization or community.

Supervisor Support

The guidance and assistance offered by supervisors to their employees, crucial for workplace motivation and achieving task objectives.

Social Support System

A network of family, friends, colleagues, and other individuals that provides emotional, informational, and practical assistance.

Old Habits

Established patterns of behavior that are repeated regularly and tend to occur subconsciously, often hard to change due to their deep-rooted nature in one's routine or personality.