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

question 97

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion.It also has $750 million in debt outstanding.Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt.Assume perfect capital markets.
-The number of shares that Galt must issue is closest to:

• A)15 million.
• B)25 million.
• C)30 million.
• D)40 million.

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Definitions:

Terminate

To bring something to an end; in employment, it refers to the act of ending the employment relationship between an employer and employee.

Common Law

A body of unwritten laws based on legal precedents established by the courts, influencing the decision-making process in judicial cases.

Summarily Dismiss

The immediate termination of an employee's contract without notice due to misconduct or breach of terms.