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

question 37

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 value of a share of d'Anconia Copper will be closest to:

• A)$18.33.
• B)$20.00.
• C)$25.00.
• D)$27.50.

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Definitions:

WAIS

Wechsler Adult Intelligence Scale, a standardized test designed to measure human intelligence in adults.

Culture-Free Intelligence Tests

Psychological tests designed to assess intelligence or cognitive abilities without relying on knowledge that is specific to any particular cultural or educational background.

Seriation

The cognitive ability to arrange objects in order by some attribute, such as size, color, or number.

Sternberg's Three Intelligences

A theory by psychologist Robert Sternberg that divides intelligence into three parts: analytical, creative, and practical intelligence.