Use the Information for the Question(s)below

question 104

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 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.
-Assume that in addition to 1.25 billion ordinary shares outstanding, Luther has share options given to employees valued at $2 billion. The market value of Luther's non-cash assets is closest to:

• A)$20 billion
• B)$22 billion
• C)$18 billion
• D)$25 billion

---

Definitions:

Absolute Threshold

The minimum stimulus intensity needed to detect a particular stimulus 50% of the time.

Stimulation

The act of provoking or causing a response in an organism, organ, or tissue through external or internal means.

Stimulation of the Senses

Refers to activities or interventions aimed at engaging one or more of the five senses (sight, sound, touch, taste, smell) for therapeutic, developmental, or experiential purposes.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.