Use the Information for the Question(s)below

question 69

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

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

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Definitions:

Wasted Coverage

Situations where marketing efforts reach individuals outside the target market, resulting in inefficiency and wasted resources.

Media Divergence

The trend of media platforms and outlets becoming more varied and specialized, catering to niche audiences and interests.

Advertising Spillover

The effect that advertising for one product or brand has on another due to overlap in customer base or market.

Cord-Cutting

The trend of consumers cancelling or forgoing traditional cable or satellite television services in favor of streaming or Internet-based alternatives.