Use the Information for the Question(s)below

question 37

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.
-The market value of Luther's non-cash assets is closest to:

• A)$25 billion
• B)$20 billion
• C)$24 billion
• D)$19 billion

---

Definitions:

Investable Assets

Financial assets or securities that individuals or institutions can purchase in order to generate returns.

Market Segmentation

The process of dividing a larger market into smaller groups, or market segments, based on meaningfully shared characteristics.

Marketing Resources

Various assets such as time, money, and human skills that a company allocates towards its marketing efforts.

Maximizes Profit

The strategic effort made by businesses to increase the difference between their revenues and expenses.