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:

Diagnosis Code

Alphanumeric codes that healthcare providers use to classify and record diseases, symptoms, and medical conditions.

Tuberculosis

A potentially serious infectious disease that primarily affects the lungs and is caused by the bacterium Mycobacterium tuberculosis.

Positive

Affirmative in attitude or quality; indicative of the presence of a particular condition, substance, or feature.

Poliomyelitis

An infectious viral disease that affects the nervous system, potentially leading to paralysis.