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:

Nerve Impulses

Electrical signals that travel along neurons, conveying information throughout the nervous system.

Depressants

Substances that reduce the activity of the central nervous system, often used to induce calmness or sleep.

Stimulants

Substances that increase alertness, attention, and energy by elevating the heart rate, blood pressure, and respiration.

Double-Blind Procedure

An experimental procedure in which neither the participants nor the experimenters know who is receiving a particular treatment, used to prevent bias in research results.