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

question 21

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 have outstanding is closest to:

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

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Definitions:

Dutch Trading Routes

Networks used by the Netherlands in the 16th to 19th centuries for commerce and colonization, pivotal in establishing Dutch global trade dominance, particularly in spices and slaves.

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of modern-day New York, New Jersey, Pennsylvania, Maryland, Connecticut, and Delaware.

Wampum

Traditional shell beads of the Eastern Woodlands tribes of Native Americans, used for trading, storytelling, and ceremonial purposes.

Pilgrims

Early settlers of the Plymouth Colony in present-day Massachusetts who arrived on the Mayflower in 1620, seeking religious freedom.