Use the Information for the Question(s)below

question 97

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. After the repurchase how many shares will Luther have outstanding?

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

Understand the dynamics of product positioning on a value map.

Understand the implications of strategic choices on a firm's competitive positioning.

Understand the role and function of different micronutrients in plant physiology.

Comprehend the major functions and involvement of micronutrients in photosynthesis and respiration.

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Definitions:

Covariances

Covariance is a measure used in statistics to determine how much two random variables vary together.

Portfolio Variance

A measurement of the dispersion of returns of a portfolio, indicating the degree of investment risk.

Risky Securities

Financial instruments that carry a higher degree of uncertainty and a higher risk of loss, such as stocks.

Weighted Sum

A calculation that takes various quantities into account, multiplying each by a factor that reflects its importance and then adding these products together.