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 stock 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 price per share of Luther's stock after the share repurchase?

• A) $20
• B) $24
• C) $15
• D) $25

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Definitions:

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, problem-solving, control of purposeful behaviors, and emotion regulation.

Executive Control System

A term often used interchangeably with executive control centre, refering to the brain networks involved in high-level cognitive functions such as decision making.

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain, facilitating communication between them.

Occipital Lobe

The Occipital Lobe is a region of the brain located at the back of the head, responsible for processing visual information from the eyes.