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

question 95

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.
-At the conclusion of this transaction,the number of shares that d'Anconia Copper will repurchase is closest to:

• A)5 million.
• B)15 million.
• C)20 million.
• D)40 million.

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Definitions:

Povidone-Iodine Solution

An antiseptic preparation used to clean skin wounds or to prepare the skin before surgery, effective in killing bacteria, fungi, and viruses.

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A chemical compound used for disinfection, bleaching, and as an antiseptic owing to its oxidative properties.

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The act of working together cooperatively as part of a group or team to achieve a common goal, especially in sports.

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The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.