Use the Information for the Question(s)below

question 42

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

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

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Definitions:

Ranking Data

A method of organizing data by assigning an ordinal or rank order to different values based on their size or importance.

Sample Spearman

Sample Spearman refers to the computation of Spearman's rank correlation coefficient on a sample data set to assess the monotonic relationship between two variables.

Rank Coefficient

A statistical measure that evaluates the strength and direction of a relationship between two ranked variables.

Spearman Rank-Correlation

A nonparametric measure of correlation that assesses how well the relationship between two variables can be described using a monotonic function, based on ranked values.