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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 share 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?
Client
An individual or organization that uses the professional advice or services of a lawyer, accountant, advertising agency, architect, etc.
Acceptance
The process of recognizing and coming to terms with reality, often involving circumstances that cannot be changed.
Client-Centered Technique
A therapeutic approach developed by Carl Rogers, emphasizing an empathetic, accepting environment to facilitate a client's growth and self-discovery.
Court-Ordered Therapy
Psychotherapy mandated by a judge as part of a legal judgment or sentence, often in criminal or family cases.
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