Assume That in Addition to 1

question 95

Multiple Choice

Assume that in addition to 1.25 billion common shares outstanding,Luther has stock options given to employees valued at $2 billion.After the repurchase,how many shares will Luther have outstanding?

• A)1.0 billion
• B)1.2 billion
• C)0.75 billion
• D)1.1 billion
• E)1.25 billion

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Definitions:

Financing Corporations

Entities that provide financial support for businesses, typically through loans or equity investments.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement as a non-operating cost.

Tax Purposes

Considerations or transactions carried out to comply with tax regulations or to optimize tax efficiency.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.